The German government’s planned electric vehicle purchase premium, intended to aid lower and middle-income households, is facing internal pressure to extend eligibility to used electric vehicles. According to reports from coalition and parliamentary sources, the Social Democratic Party (SPD) is advocating for the inclusion of pre-owned vehicles as part of the scheme, a move that could significantly alter the program’s scope and impact.
Currently, the proposed subsidy, initially earmarked for newly purchased EVs, is slated to allocate €3 billion to incentivize a transition towards climate-neutral mobility. The SPD argues that extending the premium to used EVs would drastically improve accessibility, allowing individuals on tighter budgets to participate in the shift away from combustion engines. Used electric vehicles are often considerably cheaper than their new counterparts, representing a crucial affordability factor for many potential buyers.
SPD General Secretary Tim Klüssendorf, in comments to “Bild”, emphasized the need for a universally accessible solution, stating that the premium aims to make electric vehicles a viable option for urban dwellers who currently struggle to afford them. While the policy’s stated goal is to support the German and European automotive industries, critics are already raising concerns about the potential ramifications of extending the program to used vehicles.
The shift raises questions about the program’s effectiveness in stimulating demand for new electric vehicle production. Some analysts predict a potential diversion of funding away from manufacturers investing in the next generation of EVs, potentially hindering innovation and long-term industry growth. Moreover, concerns exist regarding the quality and battery health of used EVs entering the market under the subsidy, potentially requiring stricter inspection and warranty protocols to ensure consumer safety.
The political implications are also significant. The move appears to reflect a strategic effort by the SPD to broaden the scheme’s appeal and address criticisms that the initial proposal was overly restrictive and favored wealthier individuals. Ultimately, the final decision rests with the coalition government and the inclusion of used EVs promises to be a key point of contention during the program’s ongoing development, potentially reshaping its impact on both the consumer and the automotive industries.