Germany follows UK lead with €6k Electric Car Grant to boost EV sales
Germany’s coalition government has reinstated an Electric Car Grant (ECG) of up to €6k to increase EV uptake nationwide, following the UK’s lead.
In July 2025, Prime Minister Sir Keir Starmer’s administration introduced an ECG of between £1,500 and £3,750 to help UK motorists switch from petrol and diesel cars to electric. Following its roll-out, 35% of UK drivers have said they would be willing to make the transition due to lower purchasing costs.
Germany is Europe’s largest EV market, with domestic brands Volkswagen and BMW dominating the market, selling a respective 102,339 and 51,878 cars throughout 2025. The top-selling models are the VW trio comprising the ID.7, the ID.3 and the ID.4 and ID.5. Nonetheless, EV sales slumped to 27%, and Germany has missed its EV sales targets on more than one occasion.
Totalling €3 billion, Germany’s electric car grant will offer discounts of between €1,500 and €6,000 depending on the vehicle’s size, the buyer’s earnings, and the size of their family.
Final details have yet to be announced, but Germany’s Environment Minister, Carsten Schneider confirmed to Bild that the programme will run from 2026 to 2029, providing funding for at least 800,000 cars. Schneider cited the move as a “boost for our automotive industry.”
The Government, headed by Chancellor Friederich Merz, also extended Germany’s EV road tax exemption through to December 2035, despite it costing around €600m in lost revenue until 2029.
It is expected that the arrival of more wallet-friendly EVs should help boost Germany’s EV adoption. When it goes on sale later this year, the upcoming VW ID. Polo will be priced from under €25,000. Similarly-sized affordable models include the Renault 5, Citroën ë-C3, and the Mini Cooper Electric.
Paradoxically, Germany was one of the leading voices in lobbying the European Union to water down its plan to end the sale of pure ICE (internal combustion engine) cars by 2035.
