23:42 29-11-2025

Germany confirms €3bn 2026 EV subsidies targeting families

Germany has confirmed a new, large-scale push for electric mobility: in 2026 a €3 billion subsidy package will come into force. Aimed at middle- and lower-income families, it is designed to speed up the shift to cleaner transport. The baseline incentive will be €3,000 for buying or leasing an electric car, rising to €4,000 for households with children. There are guardrails as well: support applies only to models priced up to €45,000 and with emissions below 50 g/km, effectively excluding less efficient plug-in hybrids. These limits should channel funds toward efficient, truly mass-market options.

After months of negotiations, the governing coalition decided to make the social dimension the program’s defining feature. The inclusion of used electric cars is also under consideration, a move that could widen access and deepen market coverage. In parallel, Berlin is shoring up its industrial strategy: stimulating demand is expected to aid the recovery of the domestic auto sector, which has been feeling the pressure from Chinese brands and weakening export markets.

Meanwhile, Spain remains the only major European market without a finalized incentive plan for 2026. The long-running MOVES scheme has faced criticism for red tape and limited impact, and a fresh proposal has yet to surface. This lag in demand-side support risks cementing the gap with France, Italy, and Germany, where pro-EV policies are already delivering tangible results.