Germany Reintroduces €3 Billion Subsidy for Electric Vehicles

The German government is reintroducing a €3 billion subsidy for the purchase of electric vehicles, aiming to boost the market. The measure is retroactive to January 1st and targets lower and middle-income households.

The subsidy is expected to finance the purchase of approximately 800,000 electric vehicles by 2029. From 2016 to 2023, Germany allocated approximately €10 billion in subsidies, but the program was halted in December 2023 due to budgetary pressures, leading to a drop in sales.

In 2023, 524,000 new electric cars were registered, while in 2024 the number decreased to 380,500. The new subsidy provides a basic grant of €3,000 for electric cars and €1,500 for PHEVs with emissions up to 50g CO2/km. The maximum income limit for eligibility is €80,000 for households without children, increasing for families with children.