A new strategy of Scholz’s party to popularize electric cars
According to information obtained by Bloomberg, center-left SPD I want increase sales of electric vehicles. The party’s strategy, which was to be adopted last Sunday, assumes: reintroduction of a bonus for the purchase of battery-powered cars, providing tax breaks for electric company cars and introduction of quotas for electric vehicles for leasing companies.
This proposal comes at a time when German automotive industry struggling with problems with popularization of electric vehiclesgrowing competition from cheaper Chinese brandssuch as BYDand also weaker demand. Germany and other European countries withdrew state subsidies for the purchase of electric vehicleswhich are usually more expensive than their combustion counterparts.
Battery car registrations fall after incentives withdrawn last year / Bloomberg
Collapse on the Chinese market
German car manufacturers they also struggle with weaker sales in Chinawhere the prolonged crisis in the real estate market limited luxury spending and domestic producers of electric vehicles gained an advantage. BMW and Mercedes-Benz Group recently announced that the slowdown in China will hit their profits this year.
Scholz’s party will support domestic industry
According to program assumptions SPD will also advocate for special tax incentives for companies with a “Made in Germany” agenda, as well as for tax cuts for a large part of the middle class. The party wants to link tax bonuses with investments in growth industries and those that protect jobs in the country. “Everyone who invests in Germany will receive tax breaks,” the document says.
And will it increase taxes for the richest?
SPD intends to lower income taxes for about 95 percent taxpayers and instead “make it 1 percent highest earners has become a bit more responsible” in bearing the tax burden.
This plan contradicts recent statements Friedrich Merzthe chancellor candidate for the center-right Christian Democrat Party, who called for greater respect for high-income earners.