News Digest Item
23 Aug 2018

Germany’s new electric company car tax puts pressure on carmakers – analysis


The German government’s decision to grant tax relief for electric or hybrid company cars will lead to a marked increase in demand for e-cars and batteries from January 2019 onwards, writes the consultancy PwC in a press release. According to PwC’s analysis, many carmakers have so far focused on SUVs in their e-mobility strategy, because batteries are easier to build into such vehicles. Many companies today exclude SUVs –and hybrids as well – from their lists of potential fleet vehicles because of their high CO₂ emissions. “This means that demand does not yet match supply in Germany,” commented Felix Kuhnert, global automotive leader at PwC.

Find the press release in German here.

For background, read the dossier The Energiewende and German carmakers and the article Germany’s car-loving transport minister faces clean mobility challenge.

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