Germany will expand its electric vehicle subsidy programme to include cars equipped with range extenders, broadening eligibility under a scheme designed to help low- and middle-income households purchase new electric cars, the environment ministry said.
Under the programme, subsidies of between 1,500 and 6,000 euros per vehicle will be available, as Berlin seeks to revive sluggish demand in the automotive sector, one of the country’s most important industries. Details of the plan were first reported by Bild.
The scheme has been allocated a total budget of 3 billion euros and is expected to support the purchase of up to 800,000 vehicles through 2029. The German Environment Ministry said applications can be submitted retroactively for vehicles newly registered from Jan. 1.
Range extenders use a small combustion engine as an onboard generator to recharge the main battery, increasing driving range. By including such vehicles, the government is widening the scope of the subsidy at a time when consumer demand for fully battery-electric cars has softened.
Environment Minister Carsten Schneider said imported vehicles would not be excluded from the programme, including models manufactured in China, despite growing competitive pressure on European carmakers.
Germany’s car industry has been grappling with weak demand, high production costs and intensifying global competition, prompting calls for renewed government support to help accelerate the transition to lower-emission mobility.
