The Association of the German Automotive Industry (VDA) is opposing any measures that would restrict electric vehicle (EV) subsidies to only German manufacturers. According to VDA communications chief, Simon Schütz, “We are fundamentally in favor of free and fair competition.”
Schütz dismissed the idea that German taxpayer money primarily flows abroad, noting that only seven percent of subsidy applications were filed by Chinese manufacturers. He asserted, “One cannot say that funding mainly goes to Chinese companies.” Nevertheless, he emphasized that the VDA welcomes every consumer who decides to purchase a German model, adding, “It is our job to convince people with our models and win them over.”
The VDA also rejects imposing a ceiling on the listed price of subsidized vehicles, characterizing the criticism regarding subsidized luxury models as exaggerated. Schütz stated that this is “really a marginal phenomenon,” yet it is currently being discussed as if it were predominantly about high-end cars. In fact, over 50 percent of the applications were made by people with an income under €50,000.
Regarding the proposal by Transport Minister Bilger to end subsidies once the current three billion euros are spent, Schütz remained cautious. He felt it was too early to determine if further funding would be necessary. The federal government, he noted, must first evaluate the program’s uptake in 2027.
The VDA communications head advocated for extending the subsidies to include used vehicles. Despite the current financial uncertainties, Schütz expressed optimism that the German automotive industry will continue selling its EVs regardless of government subsidies, stating, “We are fundamentally confident because we have done our job.”
