Berlin – The German federal government is planning to reinstate purchase incentives for electric vehicles, with a key focus on making them accessible to lower and middle-income households, according to a report in “Bild” newspaper.The new program will reportedly extend bonuses to buyers of used electric cars as well.
The coalition committee has discussed income thresholds of up to €3,800 per month to qualify for the incentives. The move aims to support households where electric vehicle ownership has previously been financially out of reach. SPD general Secretary Tim Klüssendorf told “Bild” that electric cars shoudl “finally come to the city districts where they have so far been difficult to finance for many,” and emphasized the importance of benefiting the German and European automotive industries.
Funding will come from the EU Climate Social Fund, supplemented by €3 billion from germany’s Climate and Conversion Fund, through 2029. The initiative seeks to reinvigorate electric vehicle sales, which plummeted after purchase bonuses were abruptly halted at the end of 2023.
While new registrations of battery-electric vehicles have increased this year – reaching an 18 percent market share for the first nine months, according to the Association of international Motor Vehicle Manufacturers – this remains insufficient to meet CO2 emissions targets. As of July 1st, 1.84 million purely electric cars were registered in germany, representing 3.7 percent of the total 49.53 million cars on the road, falling short of the political goal of 15 million electric cars by 2030.
The automotive industry is also facing challenges from increased competition from China, EU climate regulations, and US tariffs, leading to profit slumps and job cuts. Vice Chancellor Lars Klingbeil described the situation as “dramatic,” stating the need to secure “a good future” for the German automotive industry.
