Overview
- After a coalition deal, Chancellor Friedrich Merz said he would ask Commission President Ursula von der Leyen to allow plug‑in hybrids, range‑extender EVs and undefined “highly efficient” combustion models beyond 2035.
- The package includes a €3 billion purchase program with a €3,000 base grant for private buyers, income‑tested at €80,000 taxable household income with a €500‑per‑child bonus up to €1,000 and an extra €1,000 for households under €3,000 net monthly.
- Berlin targets a 2026 launch for the subsidy, subject to EU state‑aid approval, and any loosening of the car rules would still need a Commission proposal and agreement by the European Parliament and member states.
- SPD voices registered misgivings over the breadth of exemptions even as party leader Lars Klingbeil endorsed the compromise to protect jobs and competitiveness.
- Environmental groups including Greenpeace, NABU, DUH and T&E condemned the push, while new HUK‑Coburg data showed EV switch rates rising to 6.2% in Q3 and used EVs accounting for over half of EV purchases in 2025.