Almost half of Germany’s EV subsidy approvals go to lower-income households
Handelsblatt / dpa
Nearly half of the approvals under Germany’s electric vehicle (EV) subsidy scheme have gone to households in the programme's lowest income bracket, business daily Handelsblatt reported citing government data. As of mid-July, 48 percent of approved applications went to households with a taxable income of up to 45,000 euros, according to a response to a parliamentary question from Left Party lawmaker Jorrit Bosch, seen by news agency dpa.
Germany’s previous EV purchase incentive scheme, which the government abruptly halted in late 2023, offered flat-rate subsidies regardless of household earnings. The new EV subsidy programme, launched in January, offers up to 6,000 euros to lower income households for the purchase or lease of newly registered battery-electric vehicles, range-extender models and some plug-in hybrids. Subsidy levels vary depending on vehicle type, household income and family size. The government has allocated 3 billion euros to the programme, which it said would support around 800,000 vehicles through 2029. More than 17,200 applications had been approved by mid-July, according to the figures cited by Handelsblatt.
Germany’s ailing car industry has been grappling with dwindling market shares and difficulties in shifting its business model away from combustion engines. However, only two of the 14 most subsidised brands were German carmakers, with foreign producers benefitting more from the support scheme, according to figures from the environment ministry.
The shift to electric cars is Germany's central lever to reduce transport emissions. Transport accounted for 22.5 percent of the country's greenhouse gas emissions in 2025, with emissions from the sector remaining largely unchanged since 1990 despite improvements in vehicle efficiency. Analysts say rising road traffic and the growing popularity of larger, heavier vehicles have offset gains from cleaner engines. The number of fully electric cars stood at over 2.2 million at the start of April 2026. Together with buildings, transport is the sector where Germany most urgently must accelerate action to reach its 2045 climate neutrality target.