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Germany’s Social Democrats Weigh EV Subsidies in 2025 Strategy

  • EV sales have slowed since EU countries removed incentives
  • Volkswagen, Mercedes, BMW also grappling with China slowdown

A Mercedes EQE 500 4Matic electric vehicle during the Munich Motor Show.

Photographer: Alex Kraus/Bloomberg
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Germany’s Social Democrats, the party of Chancellor Olaf Scholz, is considering fresh subsidies on electric vehicles as a cornerstone of its economic policy ahead of elections next year.

The center-left SPD wants to boost EV sales by re-introducing a purchase premium for battery-powered cars, providing tax rebates for electric corporate cars, and putting EV quotas in place for leasing providers, according to a strategy document the party plans to adopt on Sunday that was viewed by Bloomberg.