Germany’s Bundesrat is urging the federal government to bring back the purchase bonus for electric cars. The proposal was introduced by the states of Lower Saxony and Saarland, with Hesse already expressing support. Since the sudden end of the environmental bonus in late 2023, interest in electric cars has dropped sharply across Germany — a trend that contrasts with rising EV sales in most other major industrial nations.
EV Market Drops After Bonus Removal
Lower Saxony’s Minister-President Stephan Weil (SPD) spoke at the Bundesrat session last week, stressing that the German EV market has not recovered since losing the subsidy. He said the government needs to “come up with something,” especially because the proposal is aimed at helping private buyers and fleets.
While new benefits for company cars were introduced recently, Weil believes this isn’t enough. He finds it “okay” to support business vehicles, but he criticizes the government for “leaving private buyers behind.” With this resolution, the Bundesrat hopes to “motivate the federal government to take stronger action.”
Germany’s Auto Industry at Stake
In the official motion, the Bundesrat highlights the major role played by the automotive industry, which employs over 770,000 people and remains the country’s most important industrial sector. Both manufacturers and suppliers have already made significant investments in battery-electric technologies.
To stay competitive globally, the chamber says Germany must continue expanding production capacity and achieve economies of scale. The motion also stresses that Germany needs around 15 million electric cars on the road by 2030 to meet its climate goals and protect jobs in the automotive sector. Achieving this will require “a special effort.”
The Bundesrat is therefore calling for a “faster and more stable growth of e-mobility” and asks the government to provide the economic push needed for the industry to stay on track.
Building Trust and Expanding Adoption
The proposal also urges measures that increase public confidence in electric mobility. According to the Bundesrat, many people are still hesitant about switching to EVs, so broader acceptance is essential. They ask for policies that consider climate needs, social fairness, and fleet electrification to make EVs more accessible to everyone.
A key factor is the expansion of charging infrastructure. To support the shift to electric vehicles and meet climate targets, Germany must build more charging stations and synchronize this with faster renewable energy and power grid expansion. The Bundesrat also welcomes the plan to build a nationwide fast-charging network for electric trucks across 350 rest stops, calling it an important step for sustainable freight transport.
Criticism of Diesel Privileges
To finance new EV incentives, the Bundesrat suggests gradually aligning diesel taxes with petrol taxes. According to the German Environment Agency, the diesel tax advantage costs the federal government about €9.6 billion every year. For comparison, in 2022, around 820,000 electric cars and plug-in hybrids received environmental bonuses costing €3.4 billion.
The Bundesrat also wants the government to scrap tax benefits for fossil-fuel company cars.
What Happens Next?
The resolution was formally submitted to the federal government after last week’s session. The government will now review it, but there is no fixed deadline, and Bundesrat resolutions are not legally binding. However, the pressure on Berlin to revive EV incentives is higher than ever as Germany tries to boost sales and stay competitive in the global auto transition.
