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SPD Lawmakers Unveil Targeted EV Subsidy Plan With Government Approval Pending

Key details remain unconfirmed pending a cross-government agreement.

Overview

  • The SPD parliamentary group published a proposal outlining a €3,000 federal purchase grant for 2026 to 2029 that would be matched by manufacturers or dealers.
  • Support would extend to new and used battery-electric cars priced under €45,000 net that are produced in Europe and meet an environmental score.
  • A social-leasing program for low-income drivers would begin in 2027 with low rates and a later purchase option, and it could be combined with the grant.
  • Dealers would provide a free battery health check with used-EV purchases to increase trust in the second-hand market.
  • Proposed financing cites about €3 billion from climate and EU social funds and higher taxes on combustion-engine company cars, while the Environment Ministry declined to confirm circulating figures or income limits.