Germany’s SPD proposes EV subsidies for low- and middle-income buyers

Support for electric vehicle purchases in Germany should focus more on low- and middle-income households to ensure that all motorists in the country can participate in the transformation of the automotive sector, Germany’s governing Social Democrats (SPD) have said in a position paper. According to a report by news agency dpa published on the news site ntv, members of the SPD parliamentary group said electric mobility currently is a phenomenon of high-income groups but should become “a success for all,” which required EVs to become more affordable.  

Consequently, the state should provide a buyer's premium of at least 3,000 euros per car between 2026 and 2029 as part of a "social" transport sector transition, the policymakers said. The premium should be complemented by a similar rebate on new vehicles from carmakers or retailers. People eligible for the premium should have “a small to medium monthly income,” the SPD group added, but provided no details. Moreover, vehicles covered by the premium should be fully electric, manufactured in Europe and not cost more than 45,000 euros before taxes. The SPD members, including the spokespeople for transport, environment, and economic policy, called for a “targeted” EV leasing programme by 2027.

In a separate statement, Sebastian Roloff, SPD parliamentary group speaker for economic policy, said that support measures for electric mobility would also help the country’s ailing automotive supplier industry. “The future of mobility is electric,” Roloff said, adding that the government would strive to assist the industry in mastering the transformation. A buyer’s premium would boost production at supplier companies and help to protect jobs, he argued. “One thing has to be clear: those who benefit from state support must make clear commitments to safeguarding jobs and value creation in Germany in return.”

SPD environment minister Carsten Schneider, meanwhile, announced more details on a tax rebate scheme for EVs that the government had presented earlier this month. The government cabinet that includes ministers from the SPD and from chancellor Friedrich Merz’s conservative Christian Democrats (CDU) agreed on a draft law to make EVs exempt from the vehicle tax. The government plans to set aside three billion euros for this purpose until 2029.

A previous buyer’s premium scheme had abruptly ended in 2023 due to funding challenges, which had led to a sudden decline in electric vehicle sales. “Our aim is to make electric mobility easier and cheaper for everyone. An exemption from the vehicle tax is a good argument for purchasing an EV,” Schneider said, adding that further support measures for low- and middle-income groups are being prepared by the government.

There were about 1.65 million purely electric vehicles registered in Germany as of January 2025. The previous government had aimed to bring this up to 15 million EVs on the road by 2030. In an overview of new registrations between January and September, the Federal Motor Transport Authority (KBA) said that about 382,000 new purely electric vehicles had been registered, equivalent to a share of roughly 18 percent of all new cars on the road.