KATHMANDU: The German government has approved an electric vehicle subsidy program worth about $3.5 billion through 2029, which is expected to support the purchase of around 800,000 EVs, according to Environment Minister Carsten Schneider.
The scheme targets low- and middle-income households, with incentives ranging from approximately $1,600 to $6,500, depending on vehicle type, household income, and family size.
Detailed guidelines of the program are scheduled to be presented at a news conference later on Friday. Applications will be accepted retroactively from January 1, 2026, while an online application portal is expected to open in May, Schneider told Bild newspaper.
The subsidy plan was announced in October by Chancellor Friedrich Merz’s coalition government, formed by the conservatives and the Social Democrats, as part of measures to support Germany’s auto industry during the transition to electric mobility.
The government has also extended EV motor-vehicle tax exemptions until December 31, 2035. The finance ministry estimates the extension will result in around $650 million in foregone tax revenue through 2029.
