Germany Expands EV Subsidies to Include Plug-in Hybrids and Range-Extended Models—Chinese Brands Eligible

The German government has announced that plug-in hybrid electric vehicles (PHEVs) and range-extended electric vehicles will be included in the national vehicle purchase subsidy program, aiming to help low- and middle-income households buy new-energy vehicles and boost the automotive industry. Battery electric vehicles (BEVs) are eligible for a €3,000 subsidy, while PHEVs and range-extended models qualify for €1,500—provided they meet either of two criteria: CO₂ emissions below 60 grams per kilometer or an all-electric range of at least 80 kilometers. The subsidy applies retroactively to newly registered vehicles from January 1 onward. The government has allocated €3 billion for the program, expected to cover approximately 800,000 vehicles through 2029. Notably, Chinese brands such as BYD are also eligible for these subsidies. Germany’s Environment Minister emphasized embracing competition openly without imposing restrictions. However, used electric vehicles are currently excluded from the scheme, prompting calls from the industry for their inclusion.