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Germany’s EV Subsidy Sparks Price War as Carmakers Roll Out Deep Discounts

Many eye-catching deals repackage earlier rebates, with the lowest‑priced models lagging in independent tests.

Overview

  • Automakers including Citroën, Ford and BMW are advertising new bonuses tied to the confirmed federal purchase subsidy of up to €6,000.
  • The Dacia Spring was marketed at €11,900 after a €5,000 manufacturer ‘electro bonus,’ making it the cheapest new car at the start of the year.
  • The subsidy is financed from the Climate and Transformation Fund, capped for up to 800,000 vehicles through 2028 and subject to income and household criteria.
  • ADAC’s late‑2025 real‑world evaluations found the cheapest EVs underperform in everyday driving, with Dacia ranking last in a six‑car test.
  • CARInstitut data show the EV–ICE price gap narrowed to about €1,340 by December 2025, while EU fleet‑emissions rules and incoming low‑cost models are expected to keep price pressure high.