Germany's electric car subsidy reaches low‑income households

The German government’s electric‑car subsidy programme, covering new electric cars and certain plug‑in hybrids registered from 1 January 2026, offers grants of up to €6,000. The amount varies with vehicle type, household income and family size, with a base grant of €3,000 and higher tiers for lower‑income families.

By 10 July, 17,226 applications had been approved, of which 48 % – almost one‑half – went to households with a taxable income of €45,000 or less. The upper income limit for any grant is €80,000. Recipients must keep the vehicle for at least three years. Critics note that, despite the targeting, many low‑income families still cannot afford a new car and call for the subsidy to be extended to affordable used vehicles by 2027.