Factsheet for measure
DE-2026-21/4204
– measures in Germany
Electric vehicle subsidy
E-Auto-Prämie
Background information
In response to the high energy prices caused by the blockade of the Strait of Hormuz, the German government has introduced a new electric vehicle subsidy program. The aim of the program is to support the transition to climate-friendly mobility while making electric cars more affordable for families.
Prior to that, from 2016 to 2023, Germany provided an electric vehicle purchase incentive known as the 'environmental bonus,' which was discontinued in 2023, with a total of around 2.2 million electric cars being subsidised.
Content of measure
The programme provides financial support for the purchase or leasing of new electric vehicles, including battery-electric cars, plug-in hybrids, range extender vehicles, and fuel cell cars. Funding levels depend on the type of vehicle, household income, and number of children. Fully electric vehicles receive at least €3,000, while plug-in hybrids and range extender vehicles are supported with €1,500. Additional bonuses are available for families with children and lower-income households, allowing some families to receive up to €6,000 in total support. The programme is financed through the German Climate and Transformation Fund with a total budget of €3 billion. Applications are submitted entirely online through the German Federal Office for Economic Affairs and Export Control (BAFA).
Use of measure
The programme is expected to support around 800,000 vehicles by 2029
Target groups
Actors and funding
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Actors
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Funding
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National government
Company / Companies
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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No involvement
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No involvement
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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Unknown
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Main level of involvement: N/A
Involvement
Role of the social partners could not be identified.
Views and reactions
No public statement from unions or employer organisations has been identified.
Sectors and occupations
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This case is sector-specific
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Economic area
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Sector (NACE level 2)
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C - Manufacturing
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C29 Manufacture of motor vehicles, trailers and semi-trailers
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This case is not occupation-specific.
Sources
