BERLIN: Germany on Monday reintroduced subsidies for electric vehicles (EVs) in a bid to accelerate the country’s transition to cleaner, less polluting cars, drawing praise from industry groups but criticism from environmentalists.
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Sales of EVs in Europe’s largest auto market have grown in recent years, but progress has been inconsistent. The previous government scrapped a subsidy programme in 2023 due to budget constraints, causing a sharp decline in EV sales. The new scheme aims to revive momentum and support both consumers and automakers.
Germany brings back #Electric #Car subsidies to boost market https://t.co/FlYoQOXUUO pic.twitter.com/WaZOs7Zn1d
— Digital Journal (@digitaljournal) January 19, 2026
Environment Minister Carsten Schneider said the programme “helps the environment, the automotive industry, and in particular families who otherwise couldn’t afford a new, environmentally friendly car.” Households with a taxable income of up to 80,000 euros ($93,000) will be eligible.
Subsidies start at 3,000 euros for fully electric cars, while plug-in hybrids and range-extender vehicles receive 1,500 euros. Additional support is available for families with children and lower-income households. Applications will open in May, covering EVs registered from January 2026 onwards.
Industry groups welcomed the move. The IG Metall union called it “an important step in the right direction,” and the VDA automotive association said the scheme will support e-mobility in Germany, though it urged improvements to charging infrastructure.
Environmental groups expressed concern, particularly over support for plug-in hybrids. Environmental Action Germany said the vehicles “offer hardly any climate benefits” compared with conventional cars, and criticised the government for insufficient climate action in transport.
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German carmakers, facing slowing sales and intense competition, rely on EV growth to meet ambitious European environmental regulations, including a proposed 90 percent cut in emissions from 2021 levels despite the EU’s plan to scrap the 2035 ban on new combustion-engine vehicles.