The Association of International Motor Vehicle Manufacturers (VDIK) welcomes the launch of the electric vehicle subsidy program by the Federal Ministry for the Environment (BMUKN). Applications for the subsidy can be submitted immediately. The program is aimed at private households with moderate and lower incomes. With a budget of 3 billion euros through 2029, the federal government aims to subsidize the purchase of approximately 800,000 electric cars, plug-in hybrids, and range extenders. The Federal Office for Economic Affairs and Export Control (BAFA) is responsible for processing the applications.
VDIK President Imelda Labbé: “The electric vehicle incentive for all brands is an additional incentive for customers to switch to electric mobility. The fully digital and unbureaucratic application process following authentication via Bund ID is a positive feature. The launch of the subsidy for low- and middle-income earners coincides with an attractive product lineup from international manufacturers. Acceptance of e-mobility is rising due to low operating costs; in this regard, electric vehicles also have an advantage given the current situation. However, there is still a need for action in some areas regarding infrastructure.”
Applications for the electric vehicle incentive can be submitted after the vehicle is registered, retroactively up to January 1, 2026. A prerequisite is that the vehicle must be owned for at least 36 months. Buyers have up to twelve months after the initial registration to apply for the incentive. However, it would be better to set the purchase date as the cutoff date for subsidy eligibility, since the subsidy commitment at the time of vehicle ordering is what matters for a purchase decision. An improvement would therefore be a binding preliminary commitment on the application portal at the time of vehicle ordering. A transparent subsidy fund would also be desirable; regular updates on the development of the subsidy budget would provide car buyers with greater predictability.
If two children under the age of 18 who are eligible for child benefit live in the household, the taxable household income may not exceed 90,000 euros. As proof, the last two tax assessment notices must be uploaded. Then, a maximum of 6,000 euros is available for a new fully electric car. For plug-in hybrids or range extenders, a subsidy of between 1,500 and 4,500 euros is possible. Used electric cars are not eligible for the subsidy.
The personal income of other children living in the household is not included in this household income. In a personal meeting, the VDIK had drawn the attention of Federal Environment Minister Carsten Schneider to potential bureaucratic hurdles in this regard and therefore expressly welcomes this provision. The BAFA telephone hotline provides customers with advice, which also helps retailers by answering questions about the application process.
The association views the digital processing of applications positively. This is an important step toward the digitization of government administration. For individuals without a BundID, relatives, car dealers, or other authorized representatives may also apply for the subsidy.
