VDA Managing Director Andreas Rade regarding EU Electrification Action Plan

"The electrification targets outlined in the EU Electrification Action Plan, particularly the goal of reaching 46% by 2040, are highly ambitious and carry the risk of further over-regulation. After all, there is already no shortage of statutory targets — such as those for CO2 fleet emissions, the expansion of renewable energy, or energy efficiency. What is crucial is for policymakers to address the framework conditions necessary for successful electrification in practice more consistently than they have to date. At best, electrification targets can serve merely as points of reference.

The proposal regarding the future price ratio between electricity and gas lacks ambition and does not sufficiently contribute to the overarching goal of electrification. Though it is fundamentally positive that the Commission explicitly addresses the tax imbalance between electricity and natural gas and includes a corresponding provision regarding the tax difference in the accompanying proposal on network charges, this measure is still insufficient. A general reduction in electricity tax for all consumers is urgently needed. This would lower the cost of electricity for charging, thereby increasing the appeal of e-mobility.

It is equally important that, in the future, grid charges facilitate rather than hinder electrification, storage, smart charging, and the flexible, system-friendly use of electric vehicles. Future regulations must be designed to really incentivize flexibility within the power system and make it economically viable for consumers and businesses. We welcome the relevant approaches outlined in the EU Electrification Action Plan and the accompanying proposal on network charges, smart metering, storage, and flexibility.

The German automotive industry is convinced of the potential of bidirectional charging, is working intensively on standardizing the overall system, and already has relevant vehicles on the market. However, the measures proposed in the plan are insufficient to enable a successful market ramp-up of bidirectional charging. Adequate framework conditions for the mass market are required: the widespread availability of flexible and bidirectional electricity contracts, the elimination of double charges regarding ancillary electricity costs, and a connection guarantee for users. The plan fails to adequately address these aspects. At the same time, however, a mandatory requirement for vehicle manufacturers to implement bidirectional capabilities would send the wrong signal and prove counterproductive. It would increase complexity and costs for the industry, fail to meet diverse customer needs, and likely hinder the ramp-up of e-mobility. On the other hand, the fact that future charging infrastructure is intended to support smart and bidirectional charging is good news.

We view the Commission’s plan to review the AFIR later this year positively. This is crucial for accelerating deployment across Europe, as there is significant ground to make up and a lack of charging options is hindering the ramp-up of e-mobility. This applies to passenger cars and, to a particular extent, to commercial vehicles. We welcome the fact that the Commission intends to systematically assess the need for depot charging for the first time and is announcing measures to address existing infrastructure gaps. After all, the successful electrification of commercial vehicle fleets requires high-performance charging infrastructure — along with the necessary supporting power grids — at operational sites, enabling freight companies to charge their electric trucks efficiently during waiting and unloading times. It is also right for the Commission to explicitly address toll exemptions or reduced toll rates for zero-emission trucks as a tool to support market uptake. Particularly in heavy-duty road freight transport, operational cost advantages are a key lever for driving investment in climate-friendly vehicles and infrastructure.

Regarding tax-based and non-tax incentives for purchasing zero-emission vehicles, reliable and targeted incentives that do not distort the market can effectively support the ramp-up of electromobility and place it on a broader footing. Conversely, flawed and ultimately counterproductive approaches — such as penalizing combustion engine vehicles through taxation, which also jeopardizes public acceptance of the transition —must be strictly avoided."