Overview

• The federal government has earmarked roughly €3 billion from national and EU funds, with BAFA set to handle applications starting 1 January 2026.
• Media reports indicate a purchase grant of up to €4,000 per vehicle, limited to battery‑electric cars with income and vehicle‑price caps still being finalized.
• For the first time, subsidies are expected to include used electric vehicles to broaden affordability.
• Key design questions remain under negotiation, including the precise income threshold, the final price cap, whether leasing will qualify, and possible rules affecting Chinese models.
• Officials also point to complementary measures, including a planned extension of EV vehicle‑tax relief beyond 2030 and faster rollout of charging infrastructure.