Boosting Momentum in the Private Electric Vehicle Market Calls for Additional Stimulus
In a recent statement, Thomas Peckruhn, Vice President of the Central Association of the German Automobile Industry (ZDK), highlighted the need for more targeted funding and incentives to stimulate the private market and achieve Germany's CO2 targets in electric mobility.
Peckruhn emphasized that any measures should extend to the used car market as well. He criticized "social leasing programs," stating they do not create a sustainable vehicle fleet in the long term, as many lessees under these programs cannot afford to take over the vehicle at the end of the contract, potentially leading to a switch back to cheaper internal combustion engines.
The ZDK welcomed the coalition committee's decision to reduce network charges for all consumers by around 3 cents/kWh from 1 January 2026. This reduction is considered a "cautious but positive signal" for electric mobility by the ZDK.
In the first half of 2025, the used car market showed stability with slight growth, with a total of around 3.274 million passenger cars changing ownership, an increase of 0.3% compared to the previous year. The number of ownership changes in June, however, decreased by 1.2% compared to the previous year, with 521,626 passenger cars changing hands.
The overall market across all drive types fell by minus 4.7% to around 1.403 million new registrations in the first half of 2025. Conversely, the number of plug-in hybrids (PHEVs) increased by 55.1% to 138,905 units, and 248,726 purely battery-electric passenger cars (BEVs) were registered, an increase of 35.1% compared to the previous year.
Peckruhn suggested that funding projects should create lasting ownership relationships and enable sustainable financing models. He advocated for the introduction of a temporary declining depreciation of 30 percent for investments in electric mobility equipment, which would serve as a strong investment booster, making private investments in electric vehicles and related infrastructure more attractive by easing the financial burden over time.
The development of a healthy used car market for electric vehicles is essential for the spread of this technology, according to the lobbyist. The ZDK has not previously commented on the stability or growth of the used car market for electric vehicles.
In conclusion, the ZDK is pushing for stronger impulses to drive more growth in the private market, advocating for more targeted funding and incentives to achieve Germany's CO2 targets and promote the transition to electric mobility.
- The Vice President of the Central Association of the German Automobile Industry (ZDK), Thomas Peckruhn, has advocated for the extension of targeted funding and incentives to stimulate the used car market in the push towards electric mobility.
- Peckruhn has criticized social leasing programs, arguing that they do not foster a sustainable vehicle fleet in the long term, as many lessees under these programs cannot afford to own the vehicle at the end of the contract, potentially leading to a switch back to internal combustion engines.
- In the first half of 2025, the ZDK welcomed the coalition committee's decision to reduce network charges for all consumers, considering it a positive signal for electric mobility.
- As part of their efforts to promote electric mobility, Peckruhn proposes that funding projects should focus on creating lasting ownership relationships and enabling sustainable financing models, such as a temporary declining depreciation of 30 percent for investments in electric mobility equipment. This, he suggests, would make private investments in electric vehicles and related infrastructure more attractive.
