Germany Revives EV Subsidies With Income-Targeted EUR 4 Billion Programme

Germany is ending its subsidy pause and launching a roughly EUR 4 billion programme to revive electric-car demand from 2026, with payments targeted at lower- and middle-income buyers. Under the scheme, private customers can receive grants of up to EUR 6,000 for battery-electric cars and up to EUR 4,500 for plug-in hybrids, depending on income and family circumstances. Eligibility is limited to households with taxable annual income up to EUR 80,000, rising by EUR 5,000 per child to a maximum of EUR 90,000. Vehicles must fall below a net list price of EUR 45,000 to qualify. The measure cleared a key legislative hurdle in April 2026, with applications expected to open once an online portal goes live. The design contrasts with the United Kingdom's Electric Car Grant, which offers grants of up to GBP 3,750 on a broader, simplicity-focused basis and is being expanded into a longer-term programme with additional charging-infrastructure funding. Berlin's socially oriented approach marks a shift from its earlier flat-rate environmental bonus, which ended abruptly in late 2023.