After having abandoned this policy at the end of 2023, which resulted in a significant slowdown in demand and also confronted the local automotive industry with more difficulties, Germany announced that, following a measure proposed by the SPD executive, it will resume the electric vehicle purchase incentive program, thus seeking to accelerate its implementation in the country. In the new incentive plan, all applicants can benefit from up to €4000 upon purchase, if the price of the new vehicle is below the maximum limit of €45,000, with the Berlin government reviving the program to reinvigorate the industry and the market, targeting primarily low- and middle-income families, which explains both the amount of the incentive and the imposition of a price limit to qualify for the support.
According to Vice-Chancellor Lars Klingbeil, around three billion euros will be allocated for this program, to be distributed between 2026 and 2029, coming from the German environmental fund and the social fund for climate action, which means that the value will not impact the State Budget. The incentives will only be valid for 100% electric vehicles manufactured in Europe, which naturally excludes Plug-In hybrids (PHEV). Used cars may be considered, but it is still unknown how, since the final model of the program for 2026 has not been finalized.
