By Muhammad Abubakar
Germany’s new multi-billion-euro electric-vehicle subsidy program officially launched today, with the Federal Office for Economic Affairs and Export Control (BAFA) opening its digital application portal.
The initiative aims to revive domestic EV sales by offering private buyers between €1,500 and €6,000 in direct state funding. Under the new guidelines, fully electric vehicles are eligible for the maximum tier of support, while select plug-in hybrids can receive up to €4,500. Buyers can claim the subsidies retroactively for any qualifying vehicle registered on or after January 1, 2026.
Unlike previous incentive schemes, this program introduces strict social scaling based on household income. Individual buyers must have a taxable annual income under €80,000 to qualify, while the cap increases to €90,000 for families with two children.
The federal government has allocated a total of three billion euros to fund the initiative, which is projected to run through 2029 or until the budget is fully exhausted.