(Jan 16): A new German subsidy programme for electric vehicles (EVs) worth €3 billion has enough funding for about 800,000 cars, according to Environment Minister Carsten Schneider.
The government will provide subsidies through 2029 of between €1,500 and €6,000 depending on the vehicle and a family’s size and earnings, Schneider told Bild newspaper on Friday. The news conference at which he’s set to present details of the mechanism was postponed to Monday to allow final adjustments, the government said in an email.
Applications can be submitted retroactively to Jan 1, 2026 and an online portal to handle them is expected to be launched in May, Bild said. “It’s a boost for our domestic auto industry,” Schneider said.
Chancellor Friedrich Merz’s ruling coalition of his conservatives and Schneider’s Social Democrats unveiled the programme in October, part of a broader effort to support the nation’s ailing carmakers.
Merz was one of the driving forces behind a campaign to force the European Union to pull back from an effective ban on combustion engines and give carmakers more flexibility in the transition to less-polluting transport.
His government also extended an auto-tax exemption for EVs through Dec 31, 2035, which the finance ministry says is expected to cost about €600 million in lost revenue through 2029.
See also: Germany’s €3 bil EV subsidy will be open to Chinese brands
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