Germany is backing electric vehicles with a €3 billion incentive programme that will remain in place until 2029. The German government has clarified that no restrictions related to the country of production of the vehicles will apply, allowing for full international competition. As a result, Chinese brands will also be eligible, unlike the approach adopted in the United Kingdom and France.

The incentives, targeted at households with an annual income of up to €80,000, will start from a base amount of €3,000. An additional €1,000 may be added (€500 per child, up to a maximum of two children), along with a further €1,000 for households with monthly income below €3,000. A further €1,000 will be available if the manufacturer provides its own incentive. For plug-in hybrid vehicles, the minimum incentive will start at €1,500.

To qualify for the incentive, beneficiaries will be required to retain ownership of the vehicle for a specified period of time. This measure is intended to prevent a practice observed in the past, whereby vehicles purchased with public incentives were immediately resold abroad.

According to ADAC, the German automobile club, the incentives should apply not only to direct purchases but also to leasing contracts, eight-seat vehicles and motorhomes with a gross vehicle weight of up to 3.5 tonnes.

The application platform is expected to be operational in May; however, the new incentive scheme will be retroactive and valid for purchases made from 1 January 2026. Through this measure, the German government expects to support the sale of approximately 800,000 electric vehicles by 2029.

Innovative technologies for the production and recycling of electric and hybrid vehicles for the automotive, transport and industrial sectors will be showcased at E-Tech Europe, taking place from 7 to 9 October 2026 at BolognaFiere, as part of Urban Tech 2026 – The Urban Technology Show, the new event dedicated to e-mobility, traffic, commuting, security, telecommunications & data, and the environment.

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