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Germany’s New EV Subsidy Fuels Buyer Interest as BMW Raises iX3 Price

Analysts warn the income‑capped scheme could chiefly benefit low‑cost imports, worsening pressure on used‑EV values.

Overview

  • Online platforms Meinauto.de and Carwow report inquiries for electric models multiplying, a trend the car dealers’ association ZDK also confirms.
  • The program offers €1,500 to €6,000 for private purchases of EVs, plug‑in hybrids and range‑extender models, with income caps such as €90,000 for a family with two children and a maximum grant of €6,000 only up to €45,000 household income.
  • Dealers flag leasing complications because the grant can be claimed only after registration, prompting pre‑financing issues and likely pushing visible registration effects out by several months.
  • Market data show no broad pullback in manufacturer discounts, with average EV discounts edging up to about 19.5% in January, even as BMW increased the iX3 list price by €2,000.
  • Expert Ferdinand Dudenhöffer criticizes the plan as wasteful and likely to tilt gains toward cheaper imports, while analysts warn that subsidizing new cars could further depress already weak used‑EV residual values.