Consumers in Germany will soon be able to apply for the federal government's new electric vehicle subsidy program, retroactive to the beginning of the year, with applications expected to open in May. The Bundestag passed the legal framework on Friday through the "Law for the Promotion of Climate-Neutral Mobility," establishing subsidies ranging from 1,500 to 6,000 euros depending on the vehicle model and household income.
Federal Environment Minister Carsten Schneider (SPD) introduced the subsidy program for private households in January. It targets households with taxable annual income of up to 80,000 euros. According to ministry information, purely electric vehicles can receive a minimum subsidy of 3,000 euros. For plug-in hybrid vehicles and electric cars equipped with range extenders, where a small combustion engine can recharge the battery, the base subsidy is set at 1,500 euros.
To provide additional support for families, the subsidy amount increases by 500 euros per child, up to a maximum of an additional 1,000 euros, the Federal Environment Ministry stated. Furthermore, households earning less than 60,000 euros or 45,000 euros in annual income will receive even higher levels of financial support.
Members of parliament voted in favor of the measure as part of a bill implementing an EU directive on consumer credit contracts. The bill was passed with votes from the Christian Democratic Union (CDU/CSU) and the Social Democratic Party (SPD), while facing opposition from the Greens, the Left Party, and the Alternative for Germany (AfD).
Germany previously offered an electric vehicle purchase subsidy. The so-called environmental bonus for private individuals and companies was introduced in 2016 and was abruptly discontinued at the end of 2023 by the traffic light coalition government.
The cancellation came in the wake of a Federal Constitutional Court ruling that declared the budget unconstitutional, forcing the coalition to cut billions in spending. The elimination of the purchase subsidy led to a sharp decline in electric vehicle registrations throughout 2024.
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