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Germany: This is how high the subsidies are for company cars with combustion engines

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Published: October 22nd, 2024,
Last updated: May 28th, 2025

In the case of company cars, the larger the company car, the more the combustion engine is financed.

The umbrella organization Transport and Environment (T&E) is calling on the German government to reform company car taxation. Instead of spending billions on „phased-out technologies„, the organization says the domestic market for electric vehicles should be boosted. According to a study commissioned by T&E, fossil fuel-powered company cars in Germany are subsidized to the tune of €13.7 billion annually. The study also shows that the bigger the company car, the greater the tax benefits.

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