Germany relaunches EV subsidy program

24 January 2026

Germany is re-introducing a subsidy scheme for buying electric vehicles with federal funds. The new EV incentive program, with a budget of 3 billion EUR by 2029, takes effect retroactively from 1 January 2026.

The previous EV incentive program was discontinued at the end of 2023 due to budget constraints. The end of the incentive program resulted in a plunge in German EV sales in the following months.

Details on the new program have been published by the German Ministry for the Environment, Climate Protection, Nature Conservation, and Nuclear Safety (BMUKN).

The new subsidy scheme is applicable to new class M1 vehicles with battery-electric drive (BEV), as well as to range extended electric vehicles (REEV) and plug-in hybrid electric vehicles (PHEV). PHEVs and REEVs must have a minimum electric range of 80 km and maximum CO₂ emissions of 60 g/km to be eligible.

The total fund of 3 billion EUR is expected to last for 800,000 applications. The program is limited to the private sector. Vehicles must be kept (purchased or leased) for a period of at least 36 months.

Eligible applicants must have a maximum taxable income of 80,000 EUR per household, which can be increased to 90,000 EUR for families with children.

The incentives for BEVs range from 3,000 to 6,000 EUR per vehicle, depending on the household income and the number of children. Subsidies for PHEV and REEV vehicles range from 1,500 to 4,500 EUR. Online applications can start in May for vehicles registered from 1 January 2026.

The subsidies are applicable to all EVs, including vehicles imported from China or other countries. The program does not require mandatory discounts by OEMs.

Source: BMUKN