The infographic on the electric vehicle incentive program illustrates the income-based tiering for the purchase of a battery-electric vehicle or an eligible plug-in hybrid.
FAQ: Grant for electric vehicles (EVs)
On 8 October 2025, the coalition committee made the decision to develop a new grant scheme to promote electric vehicles (EVs) to enable more private individuals to switch to climate-friendly mobility.
The coalition committee also agreed on further key points of the scheme on 27 and 28 November 2025.
The scheme pursues climate, social and industrial policy objectives by promoting the purchase and leasing of new vehicles.
The Federal Environment Ministry is responsible for the details of the scheme.
The grant scheme supports the purchase or leasing of new vehicles.
The grant covers all new category M1 vehicles registered in Germany for the first time that are battery electric vehicles (BEV), range extended electric vehicles (REEVs) or plug-in hybrid electric vehicles (PHEVs). REEVs and PHEVs are eligible for the grant, provided the vehicles meet certain climate requirements. The scheme provides equal funding for fuel cell electric vehicles (FCEVs) and BEVs.
Electric mobility is the key future technology on the road to climate neutrality. To maintain Germany's leadership role in the automotive industry, we need a strong domestic market for electric mobility. The grant generates important momentum for ramping up e mobility and gives a boost to the German and European automotive industry.
Electric vehicles generate zero tailpipe emissions and throughout their entire life cycle are significantly kinder to the climate and environment than internal combustion engine (ICE) vehicles. This advantage grows as the share of renewable energy in the energy mix increases. One reason for this is that EVs are significantly more efficient and economical than ICE vehicles. They have a much higher level of efficiency meaning that with the same amount of energy, EVs can drive significantly further. In addition, the energy costs per 100 km are often considerably lower, particularly when charging at home. There are also no oil changes, no exhaust and no clutch wear. This saves on car servicing costs. In addition: EVs are currently exempt from motor vehicle tax for several years.
EVs also have other benefits for the environment and quality of life: they do not emit nitrogen oxide and emit very little particulate matter. This noticeably improves ambient air quality in cities in particular. EVs are quiet, which is good for residential and urban areas.
Vehicles newly registered on or after 1 January 2026 are eligible for the grant. The grant portal for submitting applications has been available since 19 May 2026. The grant can be applied for retroactively. The decisive factor is the date of the registration, which must be from 1 January 2026 onwards.
The new EV grant scheme supports private individuals purchasing or leasing a new EU category M1 vehicle. It must be a first-time registration in Germany and either a battery electric vehicle (BEV), a range extended electric vehicle (REEV) or a plug-in hybrid electric vehicle (PHEV). To be eligible for funding, the applicants’ taxable household income must be at or below 80,000 euros per year. For households with up to two children (under 18 years of age), this limit can be increased by 5,000 euros per child. Families with two or more children can thus have up to 90,000 euros in taxable annual household income.
Proof of household income: taxable income is determined by averaging the two most recent tax statements. The tax statements submitted must be from the last three calendar years. For example. for a funding application at the start of 2026, the 2024 and 2023 tax statements can be used to determine the average taxable income.
For applicants that are married, in a civil partnership or cohabiting with a partner, the partner's taxable income must also be included (unless already done so in the tax statement submitted by the applicant).
Details on calculations, the procedure for applicants without a tax statement and how exactly children are taken into consideration are outlined in the grant guidelines.
The income limit was set at 80,000 euros per household because this is also the median household income of new car buyers. This was determined, among other things, by data collected in the Mobility in Germany survey. This means that around half of households that purchase a new car privately can benefit from the grant scheme. This income limit is a key part of means-based support, which aims to avoid knock-on effects and ensure that funding goes to those who really need it.
Basic grant: the basic grant is 3,000 euros for battery electric vehicles (BEVs) and 1,500 euros for plug-in hybrid electric vehicles (PHEVs) and range extended electric vehicles (REEVs).
Families with children: receive an additional 500 euros per child, maximum 1,000 euros (up to two children are taken into account).
Means-based support: households with a taxable income of less than 60,000 euros per year will receive an additional 1,000 euros, and a further 1,000 euros will be provided to households with a taxable income of less than 45,000 euros per year.
Purchase of a battery electric vehicle (BEV):
Taxable annual household income
Households without children under 18 years of age
Households with one child under 18 years of age
Households with two or more children under 18 years of age
85,001 to 90,000 euros
not eligible
not eligible
4,000 euros
80,001 to 85,000 euros
not eligible
3,500 euros
4,000 euros
60,001 to 80,000 euros
3,000 euros
3,500 euros
4,000 euros
45,001 to 60,000 euros
4,000 euros
4,500 euros
5,000 euros
up to 45,000 euros
5,000 euros
5,500 euros
6,000 euros
Purchase of a plug-in hybrid (PHEV) or a range-extended electric vehicle (REEV) that is eligible for a grant:
Taxable annual household income
Households without children under 18 years of age
Households with one child under 18 years of age
Households with two or more children under 18 years of age
From 1 January 2026 to 30 June 2027, PHEVs and REEVs are eligible for the grant scheme if their CO2 emissions do not exceed 60g CO2/km (type approval value) or their electric range is at least 80 kilometres.
After 1 July 2027, the grant for new PHEVs and REEVs will be reviewed with the aim of restructuring based on real-world CO2 emissions. The aim is to enable the greatest possible contribution to climate change mitigation and provide an incentive for the widest possible use of electric vehicles.
The EV grant scheme is funded with 3 billion euros from the Federal Government's Climate and Transformation Fund, which includes revenue from carbon pricing.
The total funding is available from 1 January 2026 until 2029. Depending on the distribution between BEVs, REEVs and PHEVs, the funds will be sufficient to provide grants for around 800,000 vehicles.
The grant covers all new category M1 vehicles registered in Germany for the first time that are battery electric vehicles (BEV), range extended electric vehicles (REEVs) or plug-in hybrid electric vehicles (PHEVs). Range-extended electric vehicles (REEVs) and plug-in hybrid electric vehicles (PHEVs) are eligible provided the vehicles meet certain climate requirements. As of today, some 80 percent of newly registered EVs in Germany are manufactured in Europe.
The possibility of an EU preferential arrangement for EVs is being reviewed. These provisions can be integrated into the ongoing scheme at a later date. The Federal Environment Ministry will inform consumers in good time before such an arrangement enters into force.
Suggestions that Chinese manufacturers will benefit the most from the grant scheme are not supported by the data collected so far. Due to the currently limited number of grants issued, it is not yet possible to make conclusive statements regarding the vehicles approved under the scheme. However, initial indications from the applications submitted to date show that less than 15 percent of applications are for vehicles made by Chinese manufacturers. This percentage is even lower for BEVs than PHEVs. A detailed analysis will be conducted once there are sufficient approvals to give a reliable picture.
To put things into perspective: the German automotive industry has very good EVs on offer. Domestic demand also reflects this. Last year, around 80 percent of Germany’s newly registered EVs and plug-in hybrids were produced in Europe. The top 10 electric vehicles (EVs) newly registered in May (private and commercial buyers) included models from all three German automobile manufacturers alongside Tesla. Overall, registration figures from the Federal Motor Transport Authority (KBA) show that so far in 2026, despite strong growth on the market for electric vehicles, the market share of Chinese brands has not increased. Meanwhile, German manufacturers are bringing more cheaper models on the market.
The Federal Environment Ministry is closely monitoring further developments and is ready to make adjustments should, contrary to initial figures, this be deemed necessary. Under current EU legislation, regulations favouring European vehicles would not be permissible at present. However, amendments to EU rules are currently being discussed within the framework of the Industrial Accelerator Act. The Federal Environment Ministry is open to new options for the targeted support of European products and is actively involved in developing the German position.
On 4 March 2026, the European Commission presented a proposal for the Industrial Accelerator Act (IAA). The proposal is part of EU industrial and climate policy and envisages potential "Made in EU" rules for certain strategic branches of industry.
The European Commission's IAA proposal has no direct impact on the current eligibility of electric vehicles (EVs) under the German grant scheme. The Federal Government grant scheme is being implemented on the basis of currently applicable legislation.
The European Commission proposal is now in the ordinary legislative procedure of the European Union. The European Parliament and Council of the European Union are discussing the draft and must jointly agree on it. This process usually takes quite some time. Changes to the Commission proposal are possible in the further procedure. The requirements only become legally binding once the procedure is complete and the corresponding European legal act enters into force.
The inclusion of an EU preferential arrangement in the German EV grant scheme is under review (see question 8). These provisions can be integrated into the ongoing scheme at a later date. Should this happen, the Federal Environment Ministry will inform consumers in good time.
