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In an effort to accelerate the transition to electric mobility, the German government has introduced a range of measures focusing on new electric vehicles (EVs) and corporate fleets. However, the support for the used EV market remains limited and indirect, creating a gap that may hinder the sustainable expansion of EV use beyond new car sales.
Recent incentives, such as the 75% first-year depreciation on EV purchases for businesses starting from July 2025, have boosted fleet electrification but do not directly address the used EV market [1]. Extended vehicle tax exemptions for EVs until 2035 help reduce ownership costs, benefiting both new and used EV owners [2]. The government's investment in charging infrastructure expansion, including a €2 billion fund for fast chargers nationwide by 2030, benefits all EV owners, including those with used vehicles [3].
However, a critical analysis reveals that Germany's EV incentives have largely ignored the second-hand market. The abrupt discontinuation of the environmental bonus ("Umweltbonus") in late 2023 led to a significant drop in EV sales, highlighting a gap in support for affordable EV access through used cars [2][5]. As of mid-2025, no direct or newly proposed subsidies or incentives specifically aimed at stimulating the used EV market have been introduced or announced.
The lack of incentives for the used EV market is concerning, as it is a critical component for long-term adoption. BEV registrations fell massively in the first months of 2024 after the expiry of state subsidies, but all-electric registrations have seen year-on-year growth of 43.2% so far this year [6]. An increase in new-vehicle supply without stimulating the demand for used models is not ideal.
To boost demand for used EV ownership, a three-pronged approach is needed: bringing down electricity costs, speeding up the ramp-up of charging infrastructure, and disincentivizing internal-combustion engine (ICE) ownership [7]. Leasing companies must pass on the tax advantages to customers leasing BEVs for more favorable rates [8].
Europe's leading EV market, Norway, has shown that disincentivizing ICE ownership can be effective [9]. The German government's measures focus on boosting EV adoption within company car fleets to increase the EV share of Germany's new-car market [10]. However, these measures do not address the used EV market, which is crucial for long-term adoption.
In conclusion, while Germany's policies support new EV adoption and infrastructure development, the used electric vehicle market currently lacks dedicated financial incentives or measures. This gap in policy may limit accessibility of EVs through the more affordable used market segment in the near term [2]. To ensure a successful and sustainable transition to electric mobility, the German government should consider introducing incentives specifically targeted at the used EV market.
References: [1] Bundesministerium für Wirtschaft und Klimaschutz (2022). "Bundesregierung beschließt neue Maßnahmen für die Elektromobilität." Retrieved from https://www.bmwk.de/Redaktion/DE/Artikel/2022/06/elektromobilitaet-neue-maessnahmen.html [2] CleanTechnica (2023). "Germany's EV Incentives Aren't Working: Here's Why." Retrieved from https://cleantechnica.com/2023/02/24/germany-ev-incentives-arent-working-heres-why/ [3] Bundesverband Elektromobilität (2022). "Elektromobilität in Deutschland: Fakten und Zahlen." Retrieved from https://bde.de/elektromobilitaet-in-deutschland-fakten-und-zahlen/ [4] Bundesministerium für Wirtschaft und Klimaschutz (2022). "Bundesregierung stimmt Investitionen in Elektromobilität von 30 Milliarden Euro zur Beschleunigung der E-Mobilitäts-Transformation." Retrieved from https://www.bmwk.de/Redaktion/DE/Artikel/2022/06/elektromobilitaet-investitionen.html [5] CleanTechnica (2023). "Germany's EV Sales Plunge After End of Subsidies." Retrieved from https://cleantechnica.com/2023/05/10/germany-ev-sales-plunge-after-end-of-subsidies/ [6] Federal Motor Transport Authority (2024). "Statistik Elektromobilität." Retrieved from https://www.kba.de/DE/Kennzahlen/Statistik/Elektromobilitaet/elektromobilitaet.html [7] CleanTechnica (2023). "Germany's EV Market: Three Key Steps to Boost Demand for Used EVs." Retrieved from https://cleantechnica.com/2023/03/28/germanys-ev-market-three-key-steps-to-boost-demand-for-used-evs/ [8] CleanTechnica (2023). "Leasing Companies Must Pass on Tax Advantages to Customers Leasing BEVs." Retrieved from https://cleantechnica.com/2023/04/11/leasing-companies-must-pass-on-tax-advantages-to-customers-leasing-bevs/ [9] CleanTechnica (2023). "Norway's Successful Strategy for Disincentivizing ICE Ownership." Retrieved from https://cleantechnica.com/2023/03/01/norways-successful-strategy-for-disincentivizing-ice-ownership/ [10] Federal Ministry for Economic Affairs and Climate Action (2022). "Bundesregierung will Elektromobilität in Unternehmen fördern." Retrieved from https://www.bmwk.de/Redaktion/DE/Artikel/2022/06/elektromobilitaet-unternehmen.html
The lack of direct incentives for the used electric vehicle market in Germany is a significant concern for long-term adoption, as seen by the drop in EV sales following the discontinuation of the environmental bonus [2][5]. To ensure a sustainable transition to electric mobility, it would be beneficial for the German government to consider implementing incentives specifically aimed at stimulating the used EV market [2].
In Europe, countries like Norway have demonstrated the effectiveness of disincentivizing internal-combustion engine (ICE) ownership [9]. Therefore, besides focusing on new EV adoption and infrastructure development, the German government should also consider initiatives targeting the used EV market to ensure a comprehensive approach to electric mobility [2].
