Germany reintroduces subsidies for electric and plug-in hybrid cars in 2026. The program aims to assist low and middle-income households while boosting European car production.
The core of the plan includes a purchase incentive of at least €3,000 per vehicle. The subsidy is funded by the Climate and Transformation Fund.
This initiative is expected to support around 600,000 vehicles, reigniting demand after the abrupt halt of previous subsidies. This scheme is exclusively for private buyers only.
Who is eligible for the subsidy?
Households earning under €80,000 annually can apply for the subsidy.
- The base grant is €3,000.
- You’ll get an additional €500 per child, up to a maximum child bonus of €1,000.
- Additionally, households with a net monthly income below €3,000 receive an extra €1,000.
Vehicles purchased under this program must be retained for a minimum period.
The subsidies require that a portion of the vehicle’s value is produced within Europe. The aim is to bolster European manufacturers amidst growing competition from China.
The program still requires approval from the European Commission.
