German government relaunches aid to boost EV demand

Germany’s EV market has struggled since government subsidies ended in 2023, with battery electric vehicle (BEV) sales continuing to fall. In July 2024, sales dropped by 36.8%, totaling only 30,762 units in Europe’s largest automotive market. As a result, zero-emission vehicles made up just 13% of new registrations, down from an average of over 18% in 2023. To counter this decline, the government has introduced new tax incentives for company-owned electric cars. Under this plan, companies can deduct up to 40% of the value of newly purchased electric and hybrid vehicles in the first year, with the deduction gradually decreasing to 6% by the sixth year.