Govt says Chinese brands do not benefit disproportionately from Germany’s EV support

Germany’s government has rejected reports that its purchase subsidy programme for electric vehicles (EVs) excessively benefits Chinese producers. “Speculations that Chinese producers mostly benefit from the support programme do not correspond with available data,” the environment ministry said in a statement seen by Electrive. It also said that the share of Chinese producers in EV purchase applications was lower than for plug-in hybrid cars.  

While final data on applications is not yet available, indicators point to a share of less than 15 percent for Chinese brands, the ministry said, promising a full analysis once more data is available.

Business newspapers Handelsblatt and WirtschaftsWoche had previously reported that the programme might support Chinese brands at the expense of domestic producers. The programme was launched in January and offers up to 6,000 euro to lower-income households buying or leasing fully electric vehicles, plug-in hybrids and range extenders from all producers. 

Given that Chinese automakers offer many vehicles in the low- and mid-price segments - a market that German carmakers have long neglected - it is easier for them to do business, Handelsblatt reported. Burkhard Weller, head of the German car dealer association, told WirtschaftsWoche that demand for Chinese EVs had “exploded” and that sales had doubled. 

Excluding foreign producers from support programmes runs counter to free trade rules, though the EU is currently debating a “Made in Europe” requirement for subsidies under its Industrial Accelerator Act, which according to the ministry could later be integrated in Germany’s EV support scheme.  

Ahead of an EU Council meeting on Thursday (18 June), European car industry supplier association CLEPA urged member states and the EU to establish robust rules to protect jobs in Europe, including a clear definition of what constitutes a “European vehicle” and safeguards for critical technologies to shield producers from “unfair competition” from abroad.

“The impact of the uneven playing field is already visible,”  CLEPA said in a statement. Imports of car parts from China to Europe exceeded eight billion euros in 2025, shifting the trade balance from a surplus of almost seven billion euros to a deficit of 0.7 billion euros in just five years, the lobby group said.  “The stakes for the European automotive supply industry are exceptionally high,” it argued, adding that the EU risks losing up to 350,000 jobs by 2030 and a large share of its manufacturing base.