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Wissmann: Improve depreciation options for electric company cars – start public procurement initiative

Berlin, 05 March 2015

Bundestag passes Electric Mobility Act

“The Electric Mobility Act ensures that all e-vehicles will have a standard marking and become visible on the roads. It also offers attractive advantages to customers who decide to buy an electrically powered car,” stressed Matthias Wissmann, President of the German Association of the Automotive Industry (VDA). He was commenting on the German Bundestag’s approval of the new Electric Mobility Act. For example, allowing the use of bus lanes and providing free parking spaces in inner-city areas could persuade potential buyers to go electric. “It is important that the federation, the individual states, and the municipalities implement the measures that have been passed in a coordinated way so that the incentives will apply across the country. Only then will they be effective. The Electric Mobility Act is an initial step in the right direction. But for electric mobility to really pick up speed, further measures will have to follow swiftly,” Wissmann underscored.

According to international experts, the German automotive industry is the leading provider of electric vehicles. No other country has a greater selection. By the end of 2015 German makers will have 29 volume models on the market.

Yet despite the wide range of electric models available, Germany has so far not been a leading market. Last year 13,118 passenger cars with an electric plug were registered here, which is 0.4 percent of the overall market.

“The public market launch needs extra boosting in this early phase,” the VDA president said. “As soon as e-mobility makes the leap onto the mass market, the incentives can be reduced again.” Public bodies and private enterprise should set an example when it comes to the vehicles they procure for their fleets. “In addition, we need intelligent depreciation options for firms that acquire cars with alternative propulsion,” Wissmann stated. Half the costs should be tax-deductible in the first year, according to the recommendation from the National Platform for Electric Mobility. Users of company cars are already compensated for the financial disadvantage.

Wissmann continued, “Depreciation models have a crucial advantage: in the long term they do not involve any loss of revenue for the state. This should be where politicians take action first of all, because precisely in business sector, which accounts for around 60 percent of the new car market, electric vehicles can be a good, economically effective choice.

Eckehart Rotter
Eckehart Rotter Speaker

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