The German government will launch a new subsidies program for electric vehicles worth €3 billion ($3.5 billion) through 2029.
Germany’s Environment Minister Carsten Schneider said on Friday the incentives will cover about 800,000 vehicles “over the next three to four years.”
The initiative will allow low- and middle-income families to buy electric vehicles with a state support of up to €6,000 — equivalent to $6,955.
The announcement follows the German ruling coalition’s (SDP/CDU) agreement on new EV incentives last October, with Schneider saying they are designed to “kick-start electric mobility in Germany.”
“It’s also a boost for our domestic automotive industry, which has strong electric models on offer,” the Minister stated.
The new subsidies will range from €1,500 to €6,000 – between $1,740 and $6,955 – and will be applied to battery-electric vehicles (BEV), fuel-cell vehicles, and select plug-in hybrid vehicles (PHEV).
For BEVs and fuel-cell vehicles, the base support is €3,000 ($3,478), whereas it is €1,500 ($1,738) for PHEVs that specifically emit up to 50 grams of CO₂ per km or provide a minimum WLTP range of 80 km (50 miles).
Any customer from low- and middle-income private households who have registered a new NEV from January 1, 2026 onwards will be able to apply for the subsidy.
The exact amounts of the state support were due to be announced Friday morning via a press conference, but it was postponed, without any reason provided, to Monday (January 19).
Other Incentives
Before the agreement of a new subsidy program for NEVs last October, Chancellor Friedrich Merz was a key figure in efforts to persuade the European Union (EU) to roll back what amounted to a ban on internal combustion engines (ICE).
The German Prime Minister defended greater flexibility for carmakers as the region transitions to zero-emission transport, according to the US outlet Bloomberg.
The government also extended an auto-tax exemption for NEVs through December 31, 2035.
This measure is set to cost roughly €600 million ($696 million) in lost revenue through 2029, according to the country’s Finance Ministry.
NEV Adoption and Sales
According to data released earlier this month by the Federal Motor Transport Authority (KBA), 246,439 vehicles were listed in Germany in December.
The figures marked a 9.7% rise compared to the same month in 2024.
Of the 2.9 million total vehicles registered in the country last year, 545,142 units were BEVs – representing 19.1% of the market.
Therefore, BEV sales rose 43.2% year-on-year.
Hybrid vehicles accounted for 1,127,509 units last year, with a 39.5% market share.
Specifically, 311,398 of these were PHEVs, reaching a 10.9% market share and 62.3% year-on-year growth.
Brand NEV Sales
Last year, BYD ranked first in terms of German NEV sales, with a total of 4,109 vehicles.
This represented a 1,172% increase compared to the previous year for the Chinese automaker.
Tesla achieved second place, with 2,032 units, marking a 48% year-on-year drop.
The Elon Musk-led company was followed by Leapmotor, which sold 851 vehicles.
Last year, Volkswagen accounted for the majority of Germany’s BEV sales, with a total of 102,339 units sold, followed by BMW and Skoda – 51,878 and 50,823 vehicles, respectively.
