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Germany Restores EV Subsidies With Income Limits and Retroactive Coverage

Officials aim to revive demand by focusing support on lower-income households.

German carmakers are keen to speed up the shift to electric cars

Overview

  • Private households with taxable income up to €80,000 qualify, with the threshold reported to rise by €5,000 per child to a €90,000 maximum.
  • Support starts at €3,000 for battery-electric cars and €1,500 for plug-in hybrids, with add-ons for families and lower-income buyers that can lift grants to roughly €1,500–€6,000.
  • The program allocates about €3 billion to support roughly 800,000 purchases, with subsidies available through 2029.
  • Applications open in May via an online portal and will cover vehicles registered since January 1, 2026.
  • Subsidies are open to all manufacturers, including Chinese brands, with the environment minister saying there is no evidence of a major influx of Chinese cars.