Berlin will subsidise car purchases with 1,500 to 6,000 euros to boost weak sales in the auto industry.
Germany will include cars equipped with range extenders in its electric vehicle subsidy programme, expanding eligibility under a scheme aimed at helping low and middle income households purchase new electric cars, the environment ministry said.
Under the programme, the government will provide subsidies of between 1,500 and 6,000 euros per vehicle, as Berlin seeks to revive sluggish sales in the automotive sector, one of the country’s most important industries. Details of the plan were first reported by the Bild newspaper.
The scheme has been allocated a total budget of 3 billion euros and is expected to support the purchase of up to 800,000 vehicles through 2029. The ministry said applications can be submitted retroactively for new vehicle registrations dating back to January 1.
A range extender is a small combustion engine that acts as an on board generator, recharging the main battery of an electric vehicle and extending its driving range. Including such vehicles broadens the scope of the subsidy at a time when consumer demand for fully electric cars has softened.
Environment Minister Carsten Schneider said imported vehicles would not be excluded from the programme, including those manufactured in China, despite growing competitive pressure on European carmakers.
Germany’s car industry has been grappling with weak demand, high costs and intensifying global competition, prompting calls for renewed government support to accelerate the transition to cleaner mobility.
