Overview
- The coalition set a 1 January 2026 start for a purchase premium of up to €4,000, with the BAFA handling applications and payments.
- Eligibility is reported to include a monthly income cap near €3,800 gross and a vehicle net list‑price ceiling around €45,000, with plug‑in hybrids excluded.
- The scheme would for the first time include used electric cars to make ownership more accessible for low‑ and middle‑income buyers.
- Funding is to come from the Klima‑ und Transformationsfonds and the EU climate/social fund, including roughly €3 billion from the KTF and multi‑year allocations through 2029.
- Germany is also preparing tax measures such as extended EV tax breaks and accelerated depreciation, while exploring ways to bar Chinese‑built models from subsidies and signaling support for EU flexibility on the 2035 combustion‑engine rules.