Germany has reintroduced significant subsidies for EV purchases through a new €3 billion program aimed primarily at low- and middle-income households.
Announced by Federal Environment Minister Carsten Schneider, the initiative is a key part of the government’s strategy to boost domestic electromobility and support its automotive industry during the transition from combustion engines.
The program applies retroactively, covering new vehicle registrations from January 1st, 2026, with an application portal scheduled to launch in May.
Subsidies range from €1,500 to €6,000 per vehicle, with the final amount depending on the car’s technology, the household’s income and family size. The funding is reserved exclusively for private individuals, not company cars.
The core subsidy structure offers €3,000 for battery-electric and fuel cell vehicles and €1,500 for qualifying plug-in hybrids. To be eligible, plug-in hybrids must not exceed 50 grams of CO₂ per kilometer or have a minimum electric range of 80 km. Additional top-ups are available for families with children.
Environment Minister Schneider told BILD the program is a significant market stimulus. ‘The funds are enough for an estimated 800,000 vehicles in the next three to four years. And it is a boost for our domestic automotive industry, which has strong electric cars on offer.’H
He pointed out that in 2025, about 80% of newly registered electric cars and plug-in hybrids in Germany were manufactured in Europe.
This subsidy revival comes after Chancellor Friedrich Merz’s conservative-SPD coalition agreed on the €3 billion package last October, aligning with broader government efforts to aid the auto industry, including extending an electric vehicle tax exemption until 2035.
The transition to electric mobility in Europe suffered a blow in December last year, when Manfred Weber, president of the European People’s Party (EPP), the largest political group in the European Parliament, told Bild that new regulations would require a 90% reduction in CO2 emissions from car manufacturers’ fleet targets for vehicles registered from 2035 onwards, rather than the previously planned 100% reduction.
Weber said: ‘There will also be no 100% target from 2040 onwards. This means that the technology ban on combustion engines is off the table. All engines currently manufactured in Germany can therefore continue to be produced and sold.’
Leave a Reply