German EU lawmakers suggest EV leasing scheme to boost demand

Two German EU lawmakers from the conservative opposition Christian Democrats are advocating for a scheme allowing people on low incomes to lease electric cars more cheaply, in an attempt to boost demand.

Peter Liese and Dennis Radtke, both deputies in the European Parliament, suggested in a recent joint paper that Germany should adopt a scheme similar to one rolled out in France.

However, they argue that citizens on benefits should be excluded from the scheme, which instead would be aimed at employees, self-employed individuals with small businesses and pensioners, with an annual income limit of €43,750 ($47,900) corresponding to the median wage.

The support should also be structured so that Chinese manufacturers do not benefit from it, according to the paper.

Radtke criticized a scheme proposed by the government of Chancellor Olaf Scholz to subsidize company cars, arguing that it benefits bosses but not ordinary workers.

"It is precisely those who are trying hard but still finding it difficult who need our support in switching to electric mobility," Radtke said.

Germany's neighbour France launched a state-supported leasing programme for electric models this year, starting from €100 ($109) per month. The offer targets low-income individuals who rely on a car for work and live at least 15 kilometres from their workplace.