Volkswagen to Boost Financial Assistance for Individual Electric Vehicle Purchases - Auto giant Volkswagen advocates for enhanced government assistance to boost individual electric vehicle ownership
Germany and Volkswagen Push for Greater Support in Electric Vehicle Adoption
Germany is taking steps to encourage the adoption of electric vehicles (EVs) among private buyers, as the country aims to meet its ambitious climate targets and transform its automotive industry. This push comes as Volkswagen, a key player in the EV market, calls for more targeted government support to speed up the transition to electric mobility.
In the first half of 2025, battery-electric vehicles accounted for 18.4% of new car registrations in Germany, marking a 35% year-on-year growth in EV sales [5]. However, the transition remains challenging, with private buyer demand lagging behind commercial buyers.
From July 2025, the German government has raised the gross list price threshold for reduced benefit-in-kind (BIK) taxation on fully electric company cars to €100,000, lowering tax burdens for company EV usage [1]. For private individuals, a new support plan starts in September 2025, offering up to €11,000 in bonuses for electric vehicle purchases, contingent on scrapping an old petrol or diesel car [2]. This €600 million fund aims to boost registrations to 39,000 electric vehicles by June 2026.
Volkswagen's Sales Board Member, Martin Sander, has called for stronger and clearer government incentives targeted specifically at private buyers to overcome scepticism and boost demand [3]. While corporate customers benefit from tax breaks, private consumer uptake is seen as a critical bottleneck. VW emphasizes the need for targeted state incentives as a clear signal to accelerate the transition to electric mobility.
The ID.7 Tourer, produced by Volkswagen, is a testament to Lower Saxony's transformative capability, according to SPD politician Olaf Lies, the state's Minister President [4]. Sander made these comments in Emden, Lower Saxony, where Volkswagen's plant exclusively produces electric cars. The ID.7 Tourer was Germany's most registered electric vehicle in the first half of 2025, underscoring Volkswagen's prominence in EV production.
Experts, such as Frank Schwope, an automotive expert and lecturer at the University of Applied Sciences for the Middle Class in Berlin, suggest that the slow development of electric vehicles is an important factor in the overall crisis in the German automotive industry [6]. Schwope notes that German manufacturers are not meeting the taste of young people or modern car buyers on the Chinese market.
Volkswagen has delivered 1.5 million electric cars from the ID model series, specifically from the VW plant in East Frisia [7]. The company is seeking changes to the current system to make electric cars more attractive to private buyers, with the goal of reducing skepticism among private buyers about electric cars.
In summary, Germany combines direct purchase bonuses for private buyers starting September 2025 with ongoing tax incentives for companies. However, Volkswagen pushes for more ambitious and targeted government support aimed at private customers to speed up the electric car adoption rate essential for meeting national climate and industrial goals. This aligns with trends showing strong production but slower-than-desired consumer uptake in the private segment [1][2][3][4][5][6][7].
Read also:
- EA Relies on Madden and Battlefield to Drive Microtransactions Recovery
- Expense for Creating a Digital Platform for Fantasy Sports
- AI-Enhanced Battery-Swapping Station in Southeast Asia Officially Opens Its Doors
- Honda unveils blueprint for design, advanced driver assistance systems, electric vehicles, fuel efficiency, and technology development
