Germany’s 2027 draft budget puts support for electric commercial vehicles under pressure
Germany’s proposed 2027 budget would shift transport funding towards electric passenger cars while reducing resources for several commercial vehicle programmes. Although charging infrastructure spending would remain broadly stable, the plan could weaken the investment certainty needed by truck operators and manufacturers during the early stages of heavy-duty electrification.
As first reported by sister publication Sustainable Bus, Germany’s draft 2027 budget points to a significant change in the country’s approach to transport electrification, with increased support for electric passenger cars but considerably less funding available for programmes covering buses and commercial vehicles.
Under the proposed economic plan for the Climate and Transformation Fund, or KTF, incentives for electric cars would rise from €550 million in 2026 to €803 million in 2027. By contrast, programmes supporting the decarbonisation of heavier vehicle segments would face some of the largest reductions within the mobility budget.
Less budget for electric commercial vehicles in Germany
The clearest example concerns buses with alternative drivetrains, whose allocation would fall from more than €403 million to around €130 million, a reduction of almost 68%. The draft does not yet provide the same level of detail for individual electric truck programmes, but support for commercial vehicles is expected to be reduced more substantially than incentives for passenger cars.
Overall spending under the KTF would increase to approximately €40.3 billion. However, the budget allocated to climate-friendly mobility would decline from just over €4 billion to around €3.6 billion. Germany also plans to transfer €2.7 billion in revenues from the European Emissions Trading System from the climate fund to the general federal budget.
Funding for charging and alternative refuelling infrastructure would remain comparatively stable at €1.63 billion, around €82 million below the previous year. This could support the continued rollout of public and corridor charging, but infrastructure alone may not be enough to accelerate electric truck adoption while the vehicles still carry a substantial purchase-price premium.
It’s only a proposal, so far
The proposal, which still requires parliamentary approval, comes as European truck manufacturers expand their battery-electric portfolios and logistics operators begin moving from pilot projects to initial fleet deployments.
For the heavy-duty sector, the main concern is therefore not only the absolute level of funding, but its predictability. Truck investments involve vehicles, depot charging, grid connections and long replacement cycles. Repeated changes to support schemes risk delaying fleet decisions precisely when the European electric truck market is expected to enter a more industrial phase.
