Berlin’s governing coalition is preparing a major comeback for Germany’s electric-car incentive program. After the scheme was halted at the end of 2023 due to budget constraints, the government now intends to revive it in 2025 with fresh funding and broader eligibility.
According to government insiders, around €3 billion will be allocated to support citizens with low and medium incomes who wish to switch to climate-friendly mobility.
The new version of the program will not only target buyers of new vehicles, but also – for the first time – include used electric cars.
Why used E-cars are part of the plan
The initiative aims to address two challenges at once: affordability for households and stagnation in the used-EV market.
In recent months, car dealers have reported that battery-powered second-hand cars remain unsold for up to 60 percent longer than conventional vehicles, with prices dropping by roughly 40 percent within a year.
Many of these vehicles originate from leasing fleets and earlier subsidy programs.
By extending financial support to pre-owned EVs, Berlin hopes to make electric mobility accessible beyond affluent buyers — and to reduce the growing backlog on dealer lots.
Support for other forms of electric mobility
Government sources also suggest that the subsidy framework could be widened to include other forms of emission-free transport, such as E-motorcycles, E-mopeds, and possibly E-bikes.
At the same time, policymakers stress that any new program must benefit European manufacturers, not turn into a stimulus for cheap imports from Asia.
Market background and current figures
Following the phase-out of the previous bonus scheme in late 2023, the German E-car market experienced a sharp downturn.
Sales of fully electric cars fell by more than 25 percent in 2024, and the share of private registrations dropped from 43 to 33 percent.
However, latest data from the Federal Motor Transport Authority (KBA) show a modest recovery: in September 2025, 45,495 new battery-electric vehicles were registered nationwide — a 19.3 percent market share and a 32 percent increase year-on-year.
Yet most of these registrations stem from corporate fleets taking advantage of special tax write-offs.
Analysts warn that without targeted support for private buyers, the transition to zero-emission mobility could stall again.
That is why the government is now exploring a “mixed bonus” model covering both new and used EVs — a move that could revitalize Germany’s ambitious climate targets while strengthening its domestic auto industry.
