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    Why EV Incentives Matter for Germany’s Recovery

    30 November 2025 /

    Germany’s economy is at a crossroads. Once the industrial powerhouse of Europe, it now faces structural challenges that threaten its global competitiveness. Among the most pressing issues is the automotive sector—a cornerstone of German industry—grappling with the transition to electric vehicles (EVs). Incentives for EV adoption are not just about sustainability; they are a lifeline for economic recovery. The Current Landscape After the abrupt end of consumer EV subsidies in late 2023, Germany saw a sharp decline in EV sales—down nearly 28% in the first full year without incentives. This slump hit automakers hard, forcing companies like Volkswagen and Mercedes-Benz to announce massive job cuts and consider plant closures. The…

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