Half of Germany's EV Subsidies Go to Households Earning Under €45,000 Annually

Recent German government data reveals that nearly half of the approvals under the new electric vehicle subsidy program go to low-income households. As of July 10, households with a taxable annual income not exceeding €45,000 accounted for 48% of all approved applications, according to an unpublished government response to a parliamentary inquiry by Left Party MP Juria Buss, as reported by German news agency dpa.

Details of the Government EV Subsidy Program

The German government program offers financial support for purchasing or leasing fully electric vehicles and certain plug-in hybrid models, provided the vehicle is first registered after January 1, 2026. The subsidy amount depends on the vehicle type, annual income, and number of family members, and can reach up to €6,000. As of the mentioned date, a total of 17,226 applications had been approved, reflecting initial uptake of the new scheme.

Social Grading of Subsidies and Its Impact

Buss, the Left Party's transport policy expert, said: "The initial figures show that the social grading of the subsidy is at least partially achieving its goal, with nearly half of approvals going to the lowest income bracket. However, the fundamental problem remains: many low-income earners still cannot afford to buy a new car even with government support." He stressed that by 2027 at the latest, the program must be expanded to include affordable used cars, adding, "Otherwise, the shift to electric mobility will remain financially out of reach for many, despite the social grading of the subsidy."

The basic subsidy from the German government stands at €3,000 for fully electric vehicles. Households with an annual income up to €60,000 receive €4,000, while those earning up to €45,000 get €5,000. The subsidy increases by €500 per child, up to a maximum of €1,000. Recipients must keep the vehicle for at least three years from the purchase date. Households exceeding €80,000 in annual income are not eligible for the subsidy, highlighting the program's focus on less affluent groups.