Overview
- By 1 August BAFA had approved 26,875 subsidy applications and paid out about €117 million from the €3 billion fund.
- The programme, open for vehicles first registered since 1 January 2026, offers income‑graded grants up to €6,000 and aims to cover roughly 800,000 cars through 2029.
- Analyses show the scheme is reaching lower‑ and middle‑income households but only about 28% of approved cars were produced in Germany and approvals include some high‑end models such as 36 Porsches.
- SPD and Green politicians are demanding tighter rules — proposals include excluding luxury models, adding a Made‑in‑Europe condition and extending support to used EVs — while Transport Minister Steffen Bilger says no further purchase incentives will be needed after the current programme.
- Market data show faster EV switching and growing used‑EV demand, but faster depreciation and EU limits on favouring domestic production mean the programme’s industrial effects and political fallout could change as more funds are disbursed.