Overview
- The planned incentive would start on January 1, 2026 and offer up to €4,000 for battery‑electric cars priced under €45,000 net, with plug‑in hybrids excluded.
- Officials say the funding will run through 2029 from the Klima‑ und Transformationsfonds and EU climate/social funds, focusing support on households with low and middle incomes.
- Media reports indicate used electric cars would be eligible to reach buyers on tighter budgets, though the government has yet to finalize eligibility rules and anti‑fraud safeguards.
- The coalition is still deciding whether to structure the support as a direct purchase bonus like the former Umweltbonus or as a social‑leasing model, with BAFA expected to handle applications.
- In parallel, the European Commission is developing a new class for small, affordable EVs and plans year‑end proposals related to the 2035 combustion‑engine rule, which Chancellor Merz is publicly challenging.