New financial incentives for electric car buyers retroactive

A recent report by the German newspaper Bild stated that specific categories of car buyers in Germany can benefit from new financial incentives when registering new electric cars during the current year.

The report indicated that the incentive would be applied retroactively to electric cars that were registered since the beginning of the year, explaining that depending on income, family status and other criteria, the value of the incentive could range between 1,500 and 6,000 euros.

German Environment Minister Carsten Schneider said in statements to the newspaper that “the resources are sufficient to finance about 800,000 vehicles over the next three to four years.”

The minister, who belongs to the Social Democratic Party, added that he sees the program as an incentive for the local automotive sector, which provides powerful electric cars.

The ruling coalition, which includes the conservative Christian Alliance and the Social Democratic Party, agreed last year to provide new purchasing incentives worth billions of euros, benefiting in particular low- and middle-income families, while allocating higher amounts to families with children. The maximum annual taxable income of a family eligible for the incentives was set at 80,000 euros.

At the end of 2023, the previous German government had suddenly stopped a previous program to support the purchase of electric cars, with the aim of filling the budget deficit.

It may take several months before buyers receive the new support, as an electronic platform dedicated to this purpose must first be activated, according to Bild.

It is expected that applications will become available starting next May.

In the latest official data issued by the German Federal Motor Vehicles Office, the German market for pure electric cars recorded a significant increase in the number of vehicles that were licensed for the first time last November.

The office said in a statement carried by the German News Agency that the number of new electric cars exceeded 55,740 cars, an increase of 58.5% compared to the same month in 2024, and at this pace the share of this category rose to more than 22% of the total new passenger cars licensed for the first time in Germany.