Germany's Auto Industry Flags High EV Charging Costs
Economy / Finance

Germany’s Auto Industry Flags High EV Charging Costs

prohibitively high charging costs and a lack of competitive pricing among charging network providers.. Hildegard Müller, President of the German Association of the Automotive Industry (VDA), has publicly criticized the current situation, highlighting a critical political and economic vulnerability hindering wider EV adoption.

Speaking to Bild newspaper, Müller emphasized that electricity prices for electric vehicles, particularly at public charging stations, are demonstrably uncompetitive compared to those in other European nations. While the recent surge in broader energy costs undoubtedly contributes, the VDA president specifically underlined that the problem isn’t solely attributable to general inflation. Instead, a complex and opaque pricing structure, combined with limited competition among charging network operators, is artificially inflating costs.

The core of the issue, according to Müller, lies in a system where consumers are effectively paying a premium simply due to a lack of market dynamism. The current absence of robust competition allows operators to maintain high prices without facing significant pressure to lower them. This situation disproportionately burdens EV drivers and casts a shadow over government ambitions for a swift and comprehensive shift to electric mobility.

Müller’s appeal to the federal government is directly focused on regulatory intervention. She insists that a reduction in ancillary electricity costs, specifically net charges and electricity tax applied to charging infrastructure, is essential to alleviate the financial burden on EV drivers. This demand signals a growing frustration within the automotive industry, viewing government inaction as a barrier to broader EV adoption and a potential impediment to Germany’s climate goals.

Beyond price reductions, Müller stressed the continued importance of expanding the charging infrastructure itself. While a larger network will contribute to increased competition, she cautioned that the current pricing model risk stunting even that progress, as high costs discourage usage and limit the potential for market saturation. Reports indicate some providers are charging upwards of one euro per kilowatt-hour, a price point that actively discourages potential EV owners. The VDA’s critique represents a significant pressure point for the German government, demanding a reassessment of policies surrounding electric vehicle infrastructure and challenging the feasibility of Germany’s ambitious transition to electric mobility without addressing the underlying economic realities facing consumers.