The German government plans to reintroduce subsidies for electric car purchases, focusing on low- and middle-income households, Vice-Chancellor Lars Klingbeil said on Thursday following overnight coalition committee talks. The programme will be financed with around €3 billion from the Climate and Transformation Fund and the EU Social Fund.
Klingbeil, who also leads the Social Democratic Party (SPD), described the measure as a “reallocation” of funds that would not affect the overall federal budget. “We want to support those who otherwise would not be able to afford the switch to zero-emission mobility,” he said, adding that the initiative aims to make electric vehicles more accessible to ordinary families.
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Details of the new scheme remain under discussion. It is not yet clear whether it will take the form of a direct purchase grant, similar to the environmental bonus that ended abruptly in 2023, or a social leasing model inspired by France. SPD transport spokesperson Isabel Cademartori previously suggested that “it is conceivable that you could drive an electric car for three years for 99 euros a month,” under such a leasing framework.
The SPD has proposed that the programme include both socially disadvantaged households and commuters earning between €40,000 and €60,000 annually. A launch as early as 2027 had been floated earlier this year, but Klingbeil’s comments indicate a potential acceleration.
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Germany’s previous electric car incentive scheme was halted last December amid budget constraints, sparking criticism from the automotive industry. The proposed revival aligns with the government’s broader goal of promoting climate-friendly transport while addressing social fairness in the green transition.
Further details on eligibility and subsidy levels are expected soon. The plan is also set to be a key topic at Thursday’s car summit in Berlin, where Chancellor Friedrich Merz and Klingbeil will meet with carmakers, suppliers, trade unions, and industry associations to discuss the future of electric mobility.
Source: spiegel.de