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Germany Plans to Revive EV Subsidy in 2026

Reports point to a €4,000 cap focused on lower‑income buyers, with eligibility limited to pure EVs under €45,000 and some used models.

Overview

  • Media reports say the program would start on 1 January 2026, with applications from January and payouts made after vehicle registration.
  • Draft details indicate support of up to €4,000 for battery‑electric cars priced below a €45,000 net list price, with plug‑in hybrids excluded and a <50 g CO2/km threshold cited.
  • Used electric vehicles would be eligible for the first time, a change intended to make purchases more accessible and help clear returning lease stock.
  • The subsidy is described as income‑targeted, with reports referencing an approximate €45,000 annual income cutoff to prioritize lower‑ and middle‑income households.
  • Funding is reported at about €3 billion through 2029 from the EU Climate Social Fund and Germany’s Climate and Transformation Fund, with BAFA expected to administer; officials have not yet finalized the scheme.