Effectively promoting personal electric mobility

Regaining Trust aims to identify how electric mobility can be scaled across Germany’s mass market. A key requirement is that the total cost of EVs – regardless of vehicle segment and charging options – must be lower than that of internal combustion engine vehicles. The project is initially addressing privately owned and leased vehicles, before turning to the used-car market and commercially registered vehicles. Research will focus exclusively on battery-electric passenger cars, as these make a significantly greater contribution to climate protection than other options, such as plug-in hybrids.

On 27–28 November 2025, the steering committee of Germany’s conservative governing party (CDU/CSU) and its Social Democratic coalition partner (SPD) agreed on key elements of a new programme to promote electric vehicles so that more motorists can adopt climate-neutral mobility. Amid the discussions surrounding the purchase rebate for new privately owned cars, this paper was prepared as a standalone publication drawing on the project’s findings.

In addition to privately owned cars, the project is examining whether used vehicles could be incorporated into the purchase rebate programme and how the ramp-up of commercially registered electric vehicles can be accelerated at the national level. A high-level advisory group comprising representatives from industry, associations, public administration, and civil society has supported the project since July 2025. The perspectives gathered in discussion with these representatives have made a significant contribution to refining the analyses and the recommendations presented here.

The project focused intially on two key challenges slowing the expansion of the personal EV segment:

• Purchase prices remain higher for EVs than for internal combustion engine vehicles, especially in the economy car segment. 

• Prices at public charging stations are not transparent and often high.

Together, these factors have prevented many from transitioning to electric mobility – especially those from lower-income households who depend on a car and live in multi-unit residential buildings.

This (German) paper’s recommendations for opening new market segments for personal EVs is based on two sources:

• A representative survey of 3,000 potential EV buyers, conducted by the market research institute Innofact in August of 2025. The survey identifies different groups of prospective buyers, their specific barriers to purchasing an EV, and their preferences for potential support policies.

• A legal opinion by the law firm Becker Büttner Held, which analyses regulatory options for lowering charging costs and increasing market transparency. The opinion focuses on measures that can be quickly implemented within the existing EU legal framework.

The paper uses these findings to outlines how policy can improve conditions for EV buyers and leasers.

There is a significant information gap regarding the practical dimension of EV ownership and day-to-day use. This is underscored by the survey that Agora Verkehrswende and the Climate Neutrality Foundation commissioned for the project. Figure 1 presents an excerpt on barriers to the purchase of an all-electric vehicle. The results make plain that many potential customers either are unaware of important facts about EVs or harbour misconceptions based on incorrect or outdated information.

Over 60 per cent of respondents are uncertain about the durability and lifespan of batteries and technology. About half are skeptical whether electric vehicles are net-positive for the environment. Forty per cent trace their hesitancy to political debates about European CO₂ fleet limits for automakers and the fate of existing internal combustion engine vehicles.

These results corroborate the findings of previous studies.[3] It is not enough to remove technical barriers; potential buyers must also be provided with decision-relevant information. 

Accordingly, policymakers should send clear messages regarding EVs. For instance: electric mobility is the dominant technology for road transport in Germany and Europe. And: electric cars are reliable and efficient vehicles that can travel long distances and have a smaller climate and environmental footprint than today’s internal combustion engine vehicles. 

However, debates regarding the phase-out of internal combustion engines and the primacy of so-called technological neutrality have engendered uncertainty amongst buyers. To be sure, conflicting statements by federal ministries and governing coalition parties have been undercutting the market ramp-up in the EV sector. Coordinated, evidence-based policies are needed to accelerate the market growth. Moreover, communication about EVs must be intensified, potentially with the support of the federal government. Many stakeholders are already working to improve information on EVs for private customers. Some of the necessary information could be provided through energy labelling for passenger cars. The German federal government should advocate at the EU level for member states to retain the right to exceed standard EU labeling requirements. A standardized EU-wide label design, as is currently planned, would run counter to this objective.

The project’s advisory group emphasized that car dealers play a crucial role in providing information about EVs and should therefore be supported in this capacity by automobile manufacturers. A typical way to achieve this is through dealer commissions. Strengthening the information provided by dealers can also be supported by other stakeholders. Online retailers, for example, are increasingly being called on to provide potential buyers with detailed and accurate information.

In many cases, what is needed is not to develop new information but rather to make existing information clearer and disseminate it more widely from trusted, independent sources. Important topics in this regard include the environmental footprint of EVs and the maturity and durability of batteries and related technologies. Public funding can be used to support these efforts.

The survey shows a general willingness among Germans to switch to EVs. Only around ten per cent categorically reject the possibility of EV purchase. Amongst those open to EVs, the main barriers to purchase are high upfront costs, problems with the charging infrastructure, and concerns about battery durability.

A particularly revealing finding is that people who have the option of charging at home are 76 per cent more likely to say that they would purchase an EV than those who don’t. Yet only a third of those who already have private charging infrastructure actually drive EVs. This represent several million people who could be quickly persuaded to adopt electric mobility. 

The purchase rebate programme approved by the steering committee of the coalition government at the end of November 2025 is a good first step toward accelerating the ramp-up of EVs. Ideally, the subsidy would take effect retroactively with effect to January 1, 2026, in order to prevent purchase hesitancy should policymakers require additional time in hashing out the details of the programme.

As of now, the German government plans to subsidise plug-in hybrids in addition to all-electric vehicles. This would be counterproductive for climate policy. If plug-in hybrids are subsidized, the purchase rebates should be reduced and granted only for limited periods, or they should be tied to an electric driving share of at least 80 per cent in real-world operation.

While charging EVs at home is economically attractive in many cases, public fast-charging stations are considerably more expensive. This represents a substantial cost disadvantage for anyone without access to private charging. The complex and non-transparent pricing models of public charging stations only exacerbate this disparity. The legal opinion from Becker Büttner Held shows that strengthening competition is the best short-term option for reducing public charging prices.

Based on these findings, Agora Verkehrswende and the Climate Neutrality Foundation have identified several policy recommendations to improve conditions for EV buyers in three main arenas: 

a) Fair purchase prices:

• Introduce purchase premiums based on monthly gross incomes up to 4,000 euros, with a focus on battery-electric vehicles with a list price of under 60,000 euros.
• Create targeted support for used-vehicles so that lower-income earners can also purchase EVs.
• Promote various forms of purchase (including leasing and loan financing).

b) Fair and transparent charging prices:

• Create a Germany-wide monitoring body to ensure transparency in the charging market.
• Strictly implement EU regulations on non-discriminatory pricing. 

c) Improved access to charging infrastructure:

• Eliminate bureaucratic hurdles to expanding private charging infrastructure.
• Provide funding for the creation of charging stations in multi-unit dwellings.

The way forward

Electric mobility in Germany has long stopped being a niche sector and is now poised to become standard amongst newly registered vehicles. What is more, Germany’s expanding EV market is dominated by models from German manufacturers, who produced all of Germany’s top-10 selling vehicles as of November 2025. The strength of German manufacturers on the domestic EV market can help them stay competitive globally, ensuring that industry targets and climate policy goals remain closely connected.

What is crucial is that consumer confidence continues to grow and policymakers send a clear signal that the electric car is Germany’s future. This makes sense to strengthen the economy in addition to being necessary for effective climate policy. The challenge now is to make sure that everyone who relies on a car for transportation can afford an EV. 

The recommendations we have identified to help meet this goal are easy to implement and can deliver quick results. And one aspect is particularly crucial: in the race to create a sustainable automobile industry and stop global warming, time is very much of the essence.

[1] Among newly registered fully electric vehicles between January and November 2025, the share registered by manufacturers was 12 per cent. During the same periods in 2023 and 2024, the share was 10 and 7 per cent, respectively. In the case of internal combustion engine cars, the share of new vehicles registered by manufacturers increased from 7 per cent in 2023 to 8 per cent in 2025.

[2] See Agora Energiewende (2026).

[3] See, for instance, the DAT Report 2025 and the EY Mobility Consumer Index 2024.