Germany’s coalition government announced the return of its Electric Car Grant program, offering subsidies up to €6,000 to boost nationwide EV adoption. The move follows similar incentive programs across Europe.
Environment Minister Carsten Schneider confirmed to Bild that the €3 billion program will run from 2026 through 2029. The initiative aims to fund at least 800,000 vehicle purchases.
Grant amounts range from €1,500 to €6,000 based on vehicle size, buyer income, and family circumstances.
Schneider called the program “a boost for our automotive industry” as Germany works to reverse declining EV sales momentum.
Market Performance and Targets
Germany remains Europe’s largest EV market, with domestic manufacturers Volkswagen and BMW leading sales. Volkswagen sold 102,339 units throughout 2025, while BMW delivered 51,878 vehicles.
The top-performing models include VW’s ID.7, ID.3, ID.4, and ID.5 lineup.
Despite strong manufacturer presence, EV sales dropped to 27% of total vehicle sales. Germany has missed multiple EV adoption targets in recent years.
Chancellor Friederich Merz’s government also extended Germany’s EV road tax exemption through December 2035. The extension will cost approximately €600 million in lost revenue through 2029.
Affordable Options Drive Adoption
The program coincides with new affordable EV launches expected to increase adoption rates. VW’s upcoming ID. Polo will start under €25,000 when it launches later this year.
Other budget-friendly options include:
- Renault 5
- Citroën ë-C3
- Mini Cooper Electric
The UK’s similar Electric Car Grant program launched in July 2025, offering £1,500 to £3,750 incentives. Following implementation, 35% of UK drivers indicated willingness to transition from petrol and diesel vehicles due to reduced purchase costs.
Germany previously lobbied the European Union to modify its plan ending internal combustion engine vehicle sales by 2035 – a position that contrasts with the current domestic EV push.
Final program details remain pending official announcement.
