VDA Statement regarding Federal Budget 2026

    VDA Statement regarding Federal Budget 2026

    VDA President Hildegard Müller regarding Federal Budget 2026

    Statement

    Berlin, September 21, 2025

    VDA President Hildegard Müller:

    "With its 2026 federal budget, the federal government must send a strong signal of optimism and growth. This is beyond question given the current challenges. To achieve this, clear priorities must be set to benefit the overall competitiveness of the business location: in energy prices, e-mobility, charging and refueling infrastructure, and key technologies.

    In concrete terms, this means, for example, that high electricity prices continue to put pressure on the industrial location in international competition. At the same time, charging costs are further slowing down electromobility in Germany. The coalition must now seize the opportunity to sustainably and effectively reduce costs for all consumers with the electricity tax cut announced in the coalition agreement. At the same time, the expansion of the charging and H2 refueling infrastructure—especially for heavy commercial vehicles—must once again significantly accelerate.

    The federal government's proposed increase in funding for battery research and the rapid implementation of the "High-Tech Agenda Germany" would be positive first steps for Germany as a technology hub. However, future-oriented fields such as battery cell manufacturing and semiconductor production will quickly become dependent on competitive industrial electricity prices.

    In addition, infrastructure throughout Germany urgently needs a modernization push. The necessary funds are available thanks to special funds, but they must also reach the right places and be used efficiently and effectively to trigger private investment. The federal budget must therefore finally recognize the importance of roads as the number one mode of transport—with a genuine road financing cycle and sound long-term funding for the Autobahn GmbH. Given the financial flexibility gained, the targeted increases in funding for road infrastructure fall far short of what is needed. If, despite record-breaking loans, major funding gaps concerning roads and construction freezes continue to threaten the federal and state governments, this is unacceptable, especially for medium-sized industrial enterprises across the country. And it is simply impossible to convey. This situation urgently needs to be improved during the upcoming parliamentary deliberations.  

    Particularly urgent action is also required when it comes to e-mobility: The coalition must ensure the extension of the vehicle tax exemption for electric vehicles as quickly as possible, as announced in the coalition agreement. The tax exemption has proven to be an effective incentive and would currently no longer apply to new registrations from 2026 onwards—with unforeseeable consequences for the further ramp-up of passenger cars and commercial vehicles. If the tax exemption expires at the end of the year, fully electric vehicles would be taxed even higher than plug-in hybrids—a contradiction that the coalition must urgently resolve. German manufacturers and suppliers have just once again demonstrated their innovative strength at the IAA MOBILITY, presenting an impressive range of models. The industry is doing its part and has done its homework. Now politicians must follow suit with the framework conditions as quickly as possible. In doing so, they must also address the issue of reforms in order to regain more flexibility in the budget in the future.

    The resources for a growth signal are available. They must now be used wisely and sustainably. It is also clear that the CDU/CSU and SPD must boldly and consistently set priorities and make budget cuts. The fact that the financial scope in the core budget will foreseeably continue to shrink due to interest and principal payments exacerbates the challenges. This is precisely why the industrial location must now be at the top of the budgetary agenda.

    The key here is to reduce the burden on businesses, also by a consistent reduction of red tape. It would be wrong to impose new burdens on them. This also means that tax increases would send the wrong message!

    One thing is clear: Only with a strong automotive industry, prosperity and jobs and thus the state's financial capacity, can be sustainably secured.“

    Press Office

    Eva Siegfried

    Spokesperson with focus on economics