Germany Reinstates EV Subsidies Covering Chinese Brands

[Policy Update] Germany has reinstated electric vehicle subsidies targeting low- and middle-income households, with eligibility extended to vehicles manufactured in China.

Core Policy Direction: Dual Thresholds Based on Income and Technology

Starting January 1, 2026, newly registered battery electric vehicles (BEVs), plug-in hybrids (PHEVs), and extended-range electric vehicles (EREVs) will be eligible for subsidies, provided the household’s taxable annual income does not exceed 80,000 euros (an additional 5,000 euros per minor child, capped at 90,000 euros). Applicants who have not yet filed tax returns may submit them retroactively; retirees may substitute pension statements for tax documentation.

Key Figures: Maximum Subsidy Reaches 6,000 Euros

The base subsidy for BEVs is 3,000 euros, while PHEVs and EREVs receive 1,500 euros. Low-income households (with income below 45,000 euros) can receive up to 6,000 euros when combined with child-related supplements. The government has allocated a budget of 3 billion euros, expected to cover approximately 800,000 vehicles, with the program running through 2029.

Strategic Rationale: Directly Addressing Competition from Chinese Brands

Federal Minister for Economic Affairs and Climate Action Carsten Schneider explicitly stated that imported vehicles are not excluded, emphasizing the need to "face competitive challenges head-on." Currently, only one manufacturer’s extended-range model meets the technical criteria of CO₂ emissions ≤60g/km and all-electric range ≥80km.