Germany will bring back purchase subsidies for electric cars in 2026

Two years ago, Germany decided that the time had come to withdraw the subsidies for buying electric cars. This measure promised to save a fairly substantial amount from public coffers, so they were withdrawn, and buyers who intended to acquire an electric car no longer enjoyed a very significant discount for their electric vehicle.

The effect of this withdrawal of purchase subsidies for electric cars was felt immediately. Sales of this type of vehicle fell right away, and the brands’ results quickly slipped into the red. Seeing this, the German government has backtracked and proposes the return of these incentives from 2026.

These subsidies will be applied again, but they will feature changes compared with those that applied previously. It has been announced that these subsidies will have a fund of 3,000 million euros to facilitate the purchase of electric cars by German citizens. The maximum amount of each subsidy is 4,000 euros per car. The maximum price of the electric car will be 45,000 euros, which already represents a fairly significant change from the previous conditions.

In the subsidies that ended two years ago, the maximum price of an electric car was 65,000 euros, so the maximum price of the car to be purchased has been considerably reduced. Plug-in hybrid cars are excluded from the subsidies, but used electric cars, which were previously not covered by the subsidies, have been included.

The preliminary information indicates that the beneficiaries of these new subsidies will be buyers of cars manufactured in Europe, because the aim is to promote European brands over those coming from China. The most important thing for the German government is that German industry is the biggest beneficiary of these resumed subsidies to promote electric mobility.

The previous subsidies reached a total of 10,000 million euros before being suspended due to budget cuts.

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