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German Government Agrees on New EV Subsidy, Details Coming at 10 a.m.

The plan uses means-tested grants to support lower-income buyers, with retroactive eligibility for cars registered since January 1.

Overview

  • Environment Minister Carsten Schneider is set to outline the program at 10:00 after the coalition reached agreement Sunday night, according to the ministry.
  • Reported eligibility would extend to private buyers with taxable household income up to €80,000, with grants ranging from about €1,500 to €6,000 depending on income and family status.
  • The subsidy is expected to apply retroactively to vehicles newly registered since the start of the year, with certain plug-in hybrids included under specified criteria.
  • Applications are expected to open in May via a new online portal, with final administrative rules to be detailed by the ministry.
  • Funding is reported to cover roughly 800,000 vehicles over three to four years, following the previous scheme’s termination in late 2023 to address budget shortfalls.