Overview
- Reporting indicates the European Commission is drafting an auto sector package that could ease the 2035 new‑combustion rule, with the announcement window shifting from mid‑December to possibly January.
- Germany’s coalition agreed key terms for a roughly €3 billion purchase program from 2026—income cap around €80,000 plus €5,000 per child and a €3,000 base premium that rises per child—subject to EU approval.
- Seven EU countries, led by Germany, have urged Brussels to allow plug‑in hybrids and range‑extender vehicles after 2035, arguing current rules risk jobs and competitiveness.
- The VDA projects 2.9 million car registrations in Germany in 2026 (+2%), about 693,000 new BEVs (+30%) and 286,000 PHEVs (−5%), explicitly contingent on swift rollout of the private EV subsidy.
- Fleet and rental operators caution that strict EV quotas under discussion and limited charging infrastructure would strain operations, noting recent losses after heavy EV purchases and Europe’s reliance on Asian battery supply chains.