Neckarsulm – On July 24, 2026, the Schwarz Group confirmed a freeze on orders for all-electric company cars in Germany. The corporate group behind Lidl and Kaufland is responding to weak residual values and what it views as a volatile market environment. Schwarz purchases its company cars outright and therefore bears the full risk upon their eventual resale. Employees eligible for company cars cannot order new electric vehicles for the time being, although existing vehicles and the charging network remain unaffected. However, the number of employees affected remains unclear.
Electric company cars lose value upon resale
The freeze on orders applies only to new orders of purely battery-electric vehicles in Germany. Vehicles already in use will remain in the fleet, and other national subsidiaries are continuing to pursue their own strategies. Electric cars and hybrids together account for around one-fifth of the existing fleet. However, the group does not disclose the exact number of employees eligible for company cars. Schwarz employs a total of 217,000 people in Germany.
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The economic context lies in the group’s unusual procurement model. Schwarz does not lease the cars; instead, it purchases them and sells them itself later on. Consequently, the company bears the full residual value risk. This is a particularly significant factor for electric company cars, as used EVs across many segments continue to command low resale values.
Used electric cars remain difficult to sell
In June 2026, purely electric cars accounted for just 6.4 percent of all used car transfers. While interest is growing, high-priced models continue to attract few buyers. Residual values for vehicles aged 36 months with an annual mileage of 20,000 kilometers ranged from 47 to 51 percent, depending on the vehicle class. In contrast, small electric cars priced up to 25,000 euros are in short supply, which has recently led to price stabilization.
Tax regulations make new electric company cars particularly attractive for employees. For private use, only 0.25 percent of the list price is assessed as a non-cash benefit each month. For a car costing 60,000 euros, this amounts to 150 euros in additional taxable income, whereas a combustion-engine vehicle would incur 600 euros. Furthermore, as of 2026, proof of the amount of electricity charged at home is generally required. However, the Federal Ministry of Finance permits the use of a flat rate calculated on a six-monthly basis as an alternative for the electricity cost.
Charging Network and Climate Goals Remain
Despite the halt on orders, the Schwarz Group is not withdrawing entirely from electromobility. By the end of the 2025 fiscal year, 24,024 charging points were available across 6,973 locations. According to the group, this represented an increase of approximately 245 percent over five years. Furthermore, partnerships with German automakers and electric fleets in other countries are set to continue. In Germany, employee transit passes and incentives for bicycles and e-bikes remain in place as alternatives.
Climate targets also officially remain unchanged. Schwarz reports a 44.1 percent reduction in its own operational emissions compared to 2019. The goal is to reach a 48 percent reduction by 2030, while the net-zero target for 2050 remains in place. The group intends to monitor the market and re-evaluate the decision once conditions stabilize. However, the order freeze demonstrates that tax advantages do not automatically offset the significant resale losses associated with maintaining an in-house fleet.
Author: Blackout News
Sources: Business Insider (24.07.26) – Focus (24.07.26) – Schwarz-Gruppe (22.07.26) – Deutsche Automobil Treuhand (07.07.26) – Bundesfinanzministerium (21.07.26)