Ferdinand Dudenhöffer calls for an end to the electric car subsidy

Image: Skoda

Automotive expert Ferdinand Dudenhöffer calls for an end to government purchase subsidies for electric cars. According to the director of the Center Automotive Research (CAR), such incentives are no longer necessary since electric cars have already succeeded in the market.

In July, fully battery-powered vehicles (BEVs) accounted for 29.3 percent of all new car registrations in Germany. When plug-in hybrids are included, the figure rises to 109,218 vehicles, representing 40.7 percent of all new cars. Both types of vehicles qualify for subsidies of several thousand euros under certain conditions.

Dudenhöffer criticizes in an interview with Bild the use of tax money for this subsidy. The government pays up to 6,000 euros for electric cars and up to 4,500 euros for hybrids. According to the director of the Center Automotive Research (CAR), this results in up to 41 percent of new cars sold in Germany being subsidized by the state. “I simply no longer understand what sense there is in such subsidies given these sales figures.”

Dudenhöffer believes the shift to electric cars is driven by high gasoline prices and concerns about climate change. He criticizes the fact that this process is further fueled by a state budget of three billion euros. He asks, “Why on earth subsidize electric cars—using hard-earned tax money—with a government grant when they account for 41 percent of the German auto market?”

The first purchase subsidy for electric cars was abruptly ended by the coalition government in December 2023. The black-red government reintroduced support for electric vehicles. Applications for the new subsidy are available starting May 19, retroactive to purchases made from January 1, 2026. Who qualifies for the subsidy and in what amount depends on household income and the number of children.

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About the author

Thomas Langenbucher is an expert in electromobility with professional experience in the automotive industry and finance sector. Since 2011, he has been covering electric cars, sustainable technologies, and mobility solutions for ecomento.de. Learn more.

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