Promotion without commitment – political course correction with gaps

The government continues to focus on technological openness – and is refraining from setting binding quotas for electric vehicles.

“We welcome the electrification of vehicle fleets in principle, but we expressly reject a blanket legal quota.” (line 200)

This creates political leeway, but also uncertainty: those who invest in charging infrastructure or vehicle fleets want a clear target. At least the tax framework is improving. Electric cars will remain exempt from vehicle tax until 2035, company cars will continue to enjoy tax breaks, and a new program is intended to make the switch easier for lower-income households.

“The exemption from motor vehicle tax for electric cars until 2035.” (line 206)
"A program for low- and middle-income households [...]” (line 207)

These measures are broadly created and provide the right impetus, but remain dependent on concrete implementation.

Charging infrastructure & integration: speed, transparency, new opportunities

When it comes to expanding the charging infrastructure, the coalition agreement focuses on speed, user-friendliness, and networking—fast charging, depot charging, price transparency—all of which are to be standardized across the board.

“Securing the financing of a comprehensive, needs-based and user-friendly charging network [...]” (lines 211–213)
“We will ensure price transparency and technical standardization for public charging stations.” (line 889)

Positive: Commercial use is also included – Commercial use and charging at company locations are also included. This opens up new opportunities, particularly for fleet operators and service providers in the charging infrastructure sector.

For the first time, there is also political will to integrate e-mobility into the energy system. The coalition is in favor of vehicle-to-grid, home storage solutions, and bidirectional charging at the workplace:

“We will press ahead with the expansion of system-friendly storage capacities and the system-friendly use of EV and home storage systems.” (lines 1002–1003)

This holds enormous long-term potential for new business models for municipal utilities, platform providers, and energy suppliers—provided that regulatory hurdles such as tax feed-in or connection conditions are adjusted.

Missed opportunities – but an economic possibility

Little progress has been made, however, in promoting plug-in hybrids (PHEVs) and range extenders (EREVs), which are to continue receiving subsidies despite their questionable climate balance. This is viewed critically in the industry, as these vehicles are rarely driven fully electrically in practice. The government is failing to live up to its potential here.

“Advancement of plug-in hybrid technology [...].” (lines 209–210)

In addition, there are no clear guidelines for the equitable distribution of charging infrastructure, for example in rural areas. Economically relevant fundamentals such as the electricity tax, the taxation of monetary benefits when charging, and grid fees for charging infrastructure also remain unresolved.

At the same time, requirements such as calibration law, the AFIR, technical standards, and national reporting obligations create a considerable administrative effort – especially for a young, emerging market. The market is growing – but so is the bureaucracy.

On the positive side, however, there is support for greater industrial value creation, for example in the development of battery cell production, recycling infrastructure, and autonomous driving. This will strengthen Germany as a business location—provided that the funds flow as announced.

“We will promote the development of battery cell production, including raw material extraction, recycling, and mechanical and plant engineering.” (lines 217–218)

Relief is also planned for electricity prices: the electricity tax is to be reduced and grid fees capped. This could be an economic advantage for operators of charging infrastructure in particular – if it is implemented quickly and bindingly. Emissions trading is to be expanded with social considerations. As always, the direction is right – but the details are what matter.

“We want to permanently reduce the burden on companies and consumers in Germany by at least five cents per kWh with a package of measures.” (lines 955–957)

Digression: Climate protection & energy policy at a glance

Beyond electromobility, the coalition agreement also contains important energy and climate policy content:

Climate neutrality by 2045 remains a central goal. The coalition is committed to the Paris Agreement and the EU interim target of -90% by 2040 – but with an opening for compensation measures abroad.

• (Lines 897–913)The Emissions Trading System (ETS 1 & 2) will be strengthened as a key control instrument, and social relief via the EU Climate Social Fund is planned. (Lines 916–928)
• A system-friendly expansion of renewable energies (solar, wind, bioenergy, geothermal) is intended to link electricity generation and mobility even more closely. (Lines 1014–1057)

These decisions are fundamentally positive – the speed of implementation will be crucial.

Support for e-mobility – but no clear route yet

The 2025 coalition agreement provides important impetus for electric mobility – from tax incentives and charging infrastructure to integration into the energy system. Companies that operate charging points, supply hardware or develop platforms will find many starting points in the contract.

However, there is a lack of commitment, timetables, and political guidelines. The promotion of PHEVs seems backward-looking. The regulatory burden – for example, through calibration law or AFIR – remains in place. A direction has been defined for many economically relevant fundamentals such as electricity tax and grid fees, but the details remain open.

To ensure that ambitious goals do not fail due to complexity and bureaucracy, a political reality check is now needed. Less regulation in the wrong places, more speed on the really decisive levers – especially for Germany as a business location, it is now crucial to use this leeway before others are quicker off the mark.