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Germany has introduced a €3 billion subsidy program for electric vehicle purchases aimed at low- and middle-income households. Announced by Federal Environment Minister Carsten Schneider, the program retroactively covers new vehicle registrations from January 1, 2026, with applications opening in May.

Subsidies range from €1,500 to €6,000 based on vehicle technology and household income. The core structure offers €3,000 for battery-electric and fuel cell vehicles, and €1,500 for qualifying plug-in hybrids.

The initiative is expected to support around 800,000 vehicles over the next three to four years. This program aligns with efforts to aid the domestic automotive industry and extends the electric vehicle tax exemption until 2035.