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Germany Unveils Socially Tiered EV Subsidy Worth Up to €6,000

Applications open in May, with a €3 billion budget expected to cover about 800,000 vehicles through 2029.

Overview

  • Private households with taxable income up to €80,000 qualify, with the threshold rising by €5,000 per child to a maximum of €90,000 for two children.
  • Support consists of a €3,000 base grant for battery-electric cars and €1,500 for eligible plug‑in hybrids or range extenders, plus €1,000 for incomes under €60,000, another €1,000 under €45,000, and €500 per child up to €1,000.
  • Cars must be first registered in Germany on or after January 1, 2026; purchases and leases are eligible, applications will be retroactive from May, and a 36‑month minimum holding period applies.
  • Plug‑in hybrids qualify only if type‑approved at ≤60 g CO2/km or offering at least 80 km electric range, with a review from July 1, 2027 that may shift criteria toward real‑world emissions.
  • Funding comes from the Climate and Transformation Fund with no price cap or origin restriction for now, and experts such as Ferdinand Dudenhöffer caution the scheme may have limited demand impact and could prompt manufacturers to trim discounts.