The federal government is defending its new purchase bonus for electric and hybrid cars – but criticism of it continues. Sven-Peter Rudolph, the chairman of the ACE Autoclub Europe, thinks that the fact that electric vehicles are being subsidized by the state again is generally good. “However, the federal government is falling short of expectations in key areas,” says Rudolph.
For example, he misses a price cap for eligible cars. Without an upper limit, consumers would probably apply for the bonus primarily for expensive vehicles. “If the federal government really wants to make electromobility widespread, it must specifically promote affordable vehicles,” says Rudolph and calls for a limit of 35,000 euros gross list price.
Environment Minister Carsten Schneider (SPD) had the new funding program for e-cars presented on Monday in Berlin; the black-red coalition had already announced it in October. The federal government is providing a total of three billion euros to make the purchase and leasing of new electric cars, hybrids and electric vehicles with range extenders – small combustion engines for more range – more attractive retroactively to January 1, 2026. Drivers get between 1,500 and 6,000 euros per vehicle, depending on the type of drive, household size and income. The promise: to give people with low incomes in particular access to electromobility.
As early as 2016, the then federal government made up of the SPD and CDU under Chancellor Angela Merkel introduced a purchase bonus for battery-electric vehicles, hybrids and cars with hydrogen fuel cells – the so-called environmental bonus. The goal, then and now: to boost sales of electric cars and reduce climate-damaging CO₂ emissions in German road traffic, which are primarily caused by combustion engines.
Is there funding for used electric cars?
At the end of 2023, the traffic light coalition surprisingly canceled the environmental bonus. Electric car purchases in Germany fell noticeably, and European car manufacturers are increasingly struggling with competition from Asian countries, especially China. Brands there have relied more consistently on electromobility, gained a technological edge and in some cases benefited from substantial government financial injections.
Nevertheless, electric cars are spreading in many European countries. In Germany, one in five new cars sold in 2025 was purely electric. Registrations of used cars also increased by a third compared to the previous year Figures from the Federal Motor Transport Authority show. However, their market share was still small, with only 3.6 percent of vehicles officially changing hands.
People with smaller budgets cannot buy a new electric car
Annika Fuchs, Robin Wood
Now the conservative Association of the Automotive Industry (VDA) is pleased that the funding is also available for comparatively climate-damaging plug-in hybrids can be applied for. From 2027 at the latest, it should also apply to used electric cars, says VDA President Hildegard Müller. In an interview with Deutschlandfunk on Tuesday, Federal Environment Minister Schneider countered that the used car market for electric cars was too small.
Annika Fuchs, transport officer at the environmental organization Robin Wood, is also annoyed by the current income limit: The new funding program is aimed at households with an annual income of up to 80,000 euros, with children the limit is 5,000 euros higher per child. “Higher earners benefit from this,” says Fuchs. “People with smaller budgets cannot buy a new electric car. They would be much more helped by investing in public transport.”
Marion Tiemann, transport expert at Greenpeace, suggests: “The federal government should counter-finance the funding program by paying a tax on new, particularly climate-damaging combustion engines.” Remove climate-damaging combustion engines from German traffic, Schneider wants that too with its support program. However, the federal government rejects taxes on combustion engines.