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Published on 01/19/2026 at 04:08 am EST
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BERLIN (dpa-AFX) – The new purchase incentive for electric cars is also expected to benefit the German automotive industry, according to Federal Environment Minister Carsten Schneider. “This is a strong boost for electromobility in Germany,” said the SPD politician. “And it is a boost for our domestic automotive sector, which offers strong electric vehicles.”
Schneider expects more affordable cars
Last year, about 80% of newly registered electric cars and plug-in hybrids in Germany were produced in Europe, Schneider said. Plug-in hybrids are vehicles that can run on both electricity and fuel.
The top ten newly registered electric vehicle models also demonstrate the strength of the German auto industry, the minister added. “This year, more new and also more affordable models from German manufacturers will come onto the market.”
According to figures from the Federal Motor Transport Authority, the eleven most frequently newly registered pure electric car models last year came from the VW Group or the BMW Group. Leading the way were VW’s ID.7 and ID.3. For plug-in hybrids, the picture is less clear, but here too, seven of the ten most popular models come from BMW, Mercedes, or the VW Group.
More support for those earning less or with children
In principle: Those who earn less or have children will benefit more from the new subsidy for buying or leasing an electric car. Depending on personal circumstances, between 1,500 and 6,000 euros in government support is available.
The subsidy threshold is a household income of 80,000 euros, or 90,000 euros for households with two children. The basic subsidy for pure electric cars is 3,000 euros. Households with a maximum income of 60,000 euros receive 4,000 euros, and those with a maximum income of 45,000 euros receive 5,000 euros. For each child, the subsidy increases by 500 euros, up to a total maximum of 1,000 euros.
Subsidy not only for pure electric cars
Less money is available for so-called plug-in hybrids, which can run on both electricity and fuel. For these vehicles and those with a range extender, the basic subsidy is 1,500 euros. Range extenders are small combustion engines that increase the range of electric cars.
For vehicles with these technologies to be eligible for the subsidy, they must not emit more than 60 grams of CO2 per kilometer or must have an electric range of at least 80 kilometers. From July 1, 2027, the subsidy will be reviewed, with plans to introduce requirements that focus more closely on real-world CO2 emissions./hrz/DP/jha
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