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Germany Reinstates Means-Tested EV Grants Up to €6,000, Retroactive to January 1

The €3 billion program targets private buyers under income caps, with retroactive claims possible once an online portal opens in May.

Overview

  • Private purchasers and lessees of new M1-class cars first registered from January 1, 2026 are eligible, while companies and public bodies are excluded.
  • Battery-electric vehicles receive a €3,000 base grant that increases for lower household incomes and for up to two children; plug‑in hybrids and range‑extender models start at €1,500 if they meet technical criteria.
  • Eligibility for plug‑in hybrids requires either certified CO2 emissions of no more than 60 g/km or at least 80 km electric range, with a review from July 1, 2027 to consider real‑world CO2 metrics.
  • A minimum holding period of 36 months applies to prevent immediate resale, and there is currently no price cap on eligible vehicles.
  • Funding comes from the Climate and Transformation Fund and is expected to cover roughly 800,000 vehicles through 2029; the minister frames the plan as an industry boost, while critics warn of windfall effects and limited long‑term impact.