The company car remains one of the most important elements of pay in Germany. 83% of companies offer their employees a car benefit, compared with a European average of 72%. This is shown by the International Car Policy Survey 2026 from the consultancy WTW, in which 9,688 companies from 75 countries took part worldwide, including 359 from Germany. However, the study also shows that the way companies offer company cars is changing: with more choice, higher costs, and a broader range of mobility options alongside them.
The clearest change concerns choice. As many as 46% of German companies already let their employees choose between a company car and a cash option, such as a car allowance or a mobility budget. Across Europe, only 29% do so. This puts Germany at the forefront of flexible car benefits.
So far, this has not displaced the company car: of those who can choose, a median of only 15% opt for the cash. What matters is therefore less how many people use the option than the fact that it exists.
It is also notable how differently companies justify eligibility for a company car. According to WTW, for managers it is tied to position and status in around nine out of ten companies, while in sales it is tied to the requirements of the role in over 90% of cases. Two different logics within one company need clear rules so that they remain understandable for the workforce.
The survey of companies shows a second relevant development: company cars have recently become noticeably more expensive. According to the study, median monthly leasing costs now stand at €1,000 for executives, €850 for middle management, and between €743 and €795 for sales staff. These company cars are mostly financed through contract hire with maintenance, a form of closed-end leasing in which the company does not own the vehicle. 81% of German companies use this form of financing, compared with 75% in Europe. Purchase and finance leasing play a minor role, at 18% and 17% respectively. Our article on company car leasing explains which leasing models exist and what matters in the contract.
The cost trend is increasing the pressure to act: 60% of German companies plan to review their car benefit policy within the next 12 months, compared with 44% across Europe. For many, this is also an opportunity to rethink their entire mobility strategy.
In this context, the growing trend of car subscriptions is worth a look. Although it does not appear as a separate category in the WTW study, it is gaining relevance as leasing rates rise. Unlike a leasing contract, which usually runs for several years, a car subscription can often be ended after just a few months, and insurance, maintenance, and vehicle tax are included in the monthly rate. This suits companies that are currently reviewing their car policy and don't want to commit long term.
The car subscription as a benefit via salary conversion is particularly interesting. Employees pay the rate from their gross salary and thus fund the vehicle themselves. Depending on the vehicle and personal situation, this can pay off compared with a privately arranged subscription, especially for electric cars, whose private use benefits from favourable tax treatment.
When it comes to electric mobility, the picture in Germany is mixed. On the one hand, German companies are well positioned on charging. A full 81% cover charging costs on the road (Europe: 77%), for example by providing charging cards, 68% pay for electricity when charging at home (Europe: 62%), and 65% offer charging points at the workplace (Europe: 67%).
On the other hand, Germany lags behind when it comes to steering vehicle choice. Only 36% of companies have introduced a CO₂ cap for company cars, compared with 48% across Europe. That said, according to WTW, 70% apply the same cost limit to electric and combustion engine vehicles, which can be set out in an e-car policy, for example.
Alongside the company car, German companies are expanding their mobility offering much more than their European neighbours. 28% also offer employees entitled to a company car a public transport subsidy (Europe: 19%), 23% support bicycles and 20% e-bikes, for example through company bike leasing, compared with only 4 to 5% in each case across Europe. Employees without a company car also benefit: 30% of them receive a public transport subsidy (Europe: 19%) and 16% a subsidised bicycle (Europe: 4%).
The study's figures point to a strategic shift in how companies approach mobility. The company car remains the centrepiece for now, but it is increasingly becoming part of an overall package that covers different mobility needs, especially in cities where owning a car is not very practical.
The planned policy reviews are a good opportunity to adjust more than just vehicle classes and budgets. Three questions should be on the table: What criteria are used to allocate company cars, and are they understandable for everyone? What alternative do employees receive who don't need or want a company car? And how can vehicle choice be steered so that costs and emissions fall?
One answer to the second question can be a mobility budget, offered as an alternative to the company car or in addition to it. Another is a car subscription via salary conversion. Both models extend the offering beyond the classic company car and can be used specifically for the groups for whom a company car isn't the right fit.
Sources: WTW, press release "Firmenwagen in Deutschland: Unverzichtbar, aber im Wandel" (23 July 2026); Personalwirtschaft, guest article by Andrew Planhof (WTW), 26 October 2026; Autoflotte (24 July 2026).
