Germany will restart electric vehicle subsidies: 3 billion euros to help low- and middle-income families buy zero-emission cars

Germany plans to reinstate its electric vehicle purchase subsidy policy in January 2026 to encourage low- and middle-income families to purchase zero-emission vehicles. German Chancellor Friedrich Merz announced that the government will invest €3 billion in this incentive program by 2029. The new program will provide subsidies of up to €4,000 for all-electric vehicles priced up to €45,000, a reduction from the previous cap of €65,000.