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[BUSINESS] · Germany · 15 sources

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Germany: EV subsidies reach 100,000 households

Germany's new electric vehicle (EV) subsidy program has reached a milestone, with 100,000 households receiving payments since its launch in May. Federal Environment Minister Carsten Schneider reported that the program has exceeded expectations, particularly in supporting lower-income households. Approximately half of the applicants earn a maximum of 45,000 euros annually, and three-quarters earn up to 60,000 euros. The subsidies, which can reach up to 6,000 euros per vehicle, cover new EVs, certain plug-in hybrids, and range extenders for private use.

The government has allocated three billion euros for this initiative, which is expected to support roughly 800,000 vehicles through 2029. Early data suggests that less than 15 percent of the applications are for Chinese-manufactured vehicles.

In a separate development regarding fuel costs, Germany implemented a tax reduction on gasoline and diesel effective October 1, 2026. The energy tax cut of approximately 14 cents per liter, combined with VAT effects, aims to provide a total relief of about 17 cents per liter. However, reports from the ADAC indicate that fuel prices have already begun to rise again shortly after the implementation. Meanwhile, in North Rhine-Westphalia, Minister-President Hendrik Wüst criticized oil companies, alleging they are not passing the full extent of state tax relief on to consumers.

Entities

ADAC · CDU · Carsten Schneider · Eni · Germany · Hendrik Wüst · Italy · Netherlands

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