Germany Extends EV Privileges to 2035, Aumovio Share Price Falls

Germany’s parliament has approved an extension of special privileges for electric vehicles until the end of 2035, a move designed to encourage the further expansion of electromobility. The extension, which renews regulations set to expire at the end of 2026, will allow municipalities to continue offering benefits such as free parking and access to bus lanes for EVs.

This regulatory extension arrives as automotive supplier Aumovio navigates a challenging market environment, as evidenced by its recent Q3 results. While the company managed to limit the decline in adjusted earnings before interest and taxes (EBIT) to 10.5%—falling to €137 million—its share price has plummeted to its lowest level since being spun off from Continental in late 2025. The stock currently trades at €32.45, representing a nearly 25% year-to-date loss.

Aumovio’s Q3 performance revealed a 12% drop in revenue to approximately €4.0 billion, coupled with a widening net loss, increasing from €19 million to €72 million. A significant factor weighing on results was a €350 million settlement payment related to a legal dispute with BMW over delivered brakes, a cost that was initially booked in Q2 with payments occurring in Q3 and Q4. Despite these headwinds, Aumovio secured a substantial new supply agreement with BMW following the settlement, contributing €1.4 billion in new orders. Order intake doubled overall to €6.4 billion during the quarter.

CEO Philipp von Hirschheydt confirmed the company’s full-year guidance. Despite the recent struggles, Aumovio is focusing on bolstering its User Experience (UX) division, particularly in head-up display technology, where it claims market leadership. Production of these displays has been shifted to lower-cost countries to improve profitability. The company is banking on this sector to contribute significantly to cash flow in the coming years, anticipating increased demand as autonomous driving technologies develop and reshape the in-car experience. Despite the positive outlook, von Hirschheydt does not anticipate a market rebound until 2027.