German electric car subsidy sees 51,000 applications, Chinese brands surge

Since the federal launch on 19 May 2026, Germany's electric‑vehicle purchase bonus (E‑Auto‑Prämie) has drawn more than 51,000 applications by early June. The demand is concentrated on inexpensive models priced between €20,000 and €30,000, and Chinese manufacturers such as MG and BYD have recorded notable sales increases – MG from 150 to 231 units and BYD from 77 to 235 units in the January‑April period.

The incentive is available only to private households whose taxable income does not exceed €80,000, or €90,000 for families with two or more children. Applications are submitted via BAFA, must involve vehicles first registered in Germany and kept for at least 36 months, and cover fully electric, plug‑in hybrids, range‑extenders and fuel‑cell cars. European makers including VW, Stellantis and Renault have demanded a quota that 70 % of sold cars contain 70 % local value‑added content, arguing that the subsidy intensifies pressure on battery‑cell localisation and supply‑chain security.