Shift in German Politics: Could Electromobility Times Signify a Fresh Era?

Germany has taken a significant step towards promoting electric vehicles (EVs) and advancing its national climate and infrastructure goals. Under the leadership of the new federal chancellor, Friedrich Merz, the German government introduced a comprehensive package of incentives as part of the "Responsibility for Germany" program.

Friedrich Merz, the leader of the Christian Democratic Union (CDU) in Germany, was elected as the new federal chancellor on the 6th of May 2025. His election marked a significant shift in the landscape of electromobility in Germany.

The automotive market was facing internal and external challenges under the previous government. However, the new government's measures signal a shift towards supply-side support, with the aim of streamlining regulatory frameworks, particularly in relation to permitting and environmental approval processes, to accelerate the rollout of high-power charging stations.

The plan includes reductions in corporate tax burdens and measures to lower energy and electricity costs for electric vehicles. New funding lines, low-interest loans, and improved access to infrastructure financing will support innovation in sectors such as e-mobility and charging infrastructure.

As part of the federal government's new program, a tax investment program aimed at strengthening the economic location of Germany has been introduced. This program includes accelerated depreciation for investments that are likely to also support electric vehicle adoption. Legislation has also been introduced to implement the EU Battery Regulation into national law, enhancing battery production, recycling, and environmental standards to promote sustainable electric mobility.

The German government will introduce an "investment booster" through accelerated depreciation (degressive AfA) for investments in electric cars and equipment. This move is aimed at making EVs more affordable for consumers and businesses alike.

The programme acknowledges that battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) are central pillars in achieving national emissions reduction targets. The government's commitment to streamlining regulatory frameworks is expected to make it clear by mid-year that "Germany is moving forward."

In addition to these measures, Ekoenergetyka believes that investing in EV charging at car parks is more crucial now than ever before, as public car parks are becoming strategic hubs for electric mobility. Deftpower, a company aiming to make EV charging cheaper, cleaner, and smarter, has raised €12.5M to boost European growth and enhance its AI-powered charging technology.

Despite ending consumer EV purchase subsidies in 2023, the new measures signal a shift towards supply-side support. The elections marked a significant shift in the landscape of electromobility in Germany, with the new government introducing a comprehensive package of incentives to promote the adoption of electric vehicles.

The UK Government has also set new technical and environmental requirements for electric vehicles to qualify for grants of up to £3,750. These developments in both Germany and the UK demonstrate a growing global commitment to promoting electric vehicles and advancing sustainable mobility.