Transportation

German Carmakers Get EV Tax Boost Before Summit With Merz

Vehicles move along an assembly line at a manufacturing facility in Munich. — Vehicles move along an assembly line at a manufacturing facility in Munich.
Photographer: Jana Islinger/Bloomberg

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Michael Nienaber

October 6, 2025 at 12:06 PM UTC

Updated on

October 6, 2025 at 5:39 PM UTC

Germany’s ruling coalition confirmed it will extend a tax exemption for new electric vehicles as part of a broader effort to support the nation’s key car industry in the transition to more climate-friendly technologies.

Finance Minister Lars Klingbeil will present a draft law soon which will keep the existing tax exemption for EVs in place until 2035, Maximilian Kall, a finance ministry spokesman, said Monday at a regular government news conference in Berlin.