Germany Revives EV Subsidy: Up to €6,000 for 800,000 Vehicles Over Three Years

The German government recently announced the reinstatement of its electric vehicle (EV) purchase subsidy program, planning to invest €3 billion over three years to cover approximately 800,000 vehicles. The new policy will take effect on January 1, 2026, and apply to newly registered battery-electric vehicles, certain plug-in hybrids, and range-extended EVs. Subsidy amounts will be tiered based on vehicle type, household size, and income level, offering private consumers between €1,500 and €6,000. The policy is specifically designed to favor middle- and low-income households, with detailed eligibility criteria to be released later. Notably, the subsidies carry no restrictions based on vehicle origin, allowing foreign automakers—including Chinese brands—to participate. The German government emphasized it would not impose import barriers, asserting that domestic automakers remain competitive and that there is no evidence of "dumping" by Chinese EV manufacturers. Germany had previously terminated the subsidy program at the end of 2023 due to fiscal constraints, leading to a year-over-year decline of more than 27% in EV registrations in 2024.