The German government is preparing a new subsidy programme for electric vehicles (EVs) set to begin on Jan. 1, 2026, which for the first time is expected to include used EVs, aiming to support low- and middle-income households while tightening eligibility criteria compared with previous schemes, according to media reports and government statements.
The programme, funded with three billion euros from the Climate and Transformation Fund and the EU Social Fund, will offer a purchase bonus of up to 4,000 euros per vehicle. Finance Minister Lars Klingbeil said last week the funding would specifically target households switching to zero-emission vehicles, though he did not specify whether the scheme would take the form of a direct purchase incentive or other models such as social leasing.
See also: Germany Plans €3 Billion Electric Car Subsidy for Low- and Middle-Income Households
The new plan reportedly includes stricter conditions than the former environmental bonus, which ended abruptly in late 2023. Gross monthly income caps under discussion could limit eligibility to households earning up to 3,800 euros. Vehicles will also face tighter price restrictions, with a net list price capped at 45,000 euros, down from 65,000 euros in the previous programme. Only fully electric vehicles will be eligible, excluding plug-in hybrids. Including used EVs could make electric cars more accessible to lower-income households and reflect the growing availability from lease returns and company fleets.
SPD Secretary-General Tim Klüssendorf told Bild newspaper, “Everyone must be able to afford the transition. This funding is intended to finally bring electric cars into urban neighbourhoods where they have so far been difficult to finance. What matters to me in designing this programme is that it must primarily benefit the German and European automotive industries. The Environment Ministry will ensure this. The future is electric, and we want it to be written at German production sites.”
See also: Germany Plans to Extend Electric Vehicle Tax Exemption Until 2035
The government is reportedly considering measures to prioritize German and European-made vehicles, potentially excluding some imported models. The subsidy may also extend to other forms of climate-neutral mobility, including electric mopeds, motorcycles, and possibly e-bikes.
Source: bild.de, auto-motor-und-sport.de, rnd.de
