Germany Launches Electric Vehicle Subsidies, Opening to Chinese Enterprises

Special Correspondent of the Newspaper in Germany, Qing Mu

The German federal government announced on Monday that it will again implement a subsidy policy for electric vehicles to improve the climate environment and revitalize the struggling German automotive industry. Germany will open a 3 billion euro electric vehicle subsidy to all manufacturers, including Chinese brands. German Environment Minister Schneiders said: "We will face the challenges brought by competition and will not set limits in this regard."

    According to the "Handelsblatt" reported on the 20th, under the new rules, anyone who purchases or leases an electric vehicle in the future will receive a subsidy ranging from 1,500 to 6,000 euros, depending on the type of vehicle, income level, and family size. Pure electric vehicles, extended-range electric vehicles, or plug-in hybrid electric vehicles are all within the scope of the subsidy, and the subsidy is unrelated to the vehicle's listed price.

    The German Federal Environment Ministry stated that the total amount of 3 billion euros comes from the German federal government's climate and transformation fund, which is expected to benefit about 800,000 electric vehicles over the next 3 to 4 years. Schneiders said at a press conference in Berlin: "This will allow us to move away from reliance on gasoline and diesel, thus protecting the climate and reducing dependence on power struggles among oil-producing countries and fluctuations in fuel prices."

    The previous round of the German electric vehicle subsidy program ended at the end of 2023, leading to a significant drop in electric vehicle sales in 2024.

    "The new subsidy plan is open to all car manufacturers, regardless of their country of origin," reported the German AD HOC News. This inclusive approach makes Germany different from other European countries such as France or the UK, whose subsidy programs effectively exclude many Chinese cars.

    The "Handelsblatt" pointed out that if the subsidy plan were only targeted at European manufacturers, it would be legally difficult to implement. Schneiders explained that about 80% of new electric vehicles registered in Germany are made in Europe. He expressed confidence in the quality of European and German cars and said, "Consumers also need these models."

    Some media have stated that this decision may significantly benefit more affordable electric vehicle brands like BYD, which are expanding their market share in Europe. Schneiders also said that more affordable models from German domestic car manufacturers will be launched this year: "These are all very excellent German cars currently on the market."

    The "Wirtschaftswoche" cited data from the German Federal Motor Transport Authority, stating that the top 11 new pure electric vehicles registered in 2025 are all from Volkswagen or BMW. In the case of hybrid electric vehicles, seven of the top 10 models are from BMW, Mercedes-Benz, or Volkswagen. However, Chinese automakers offer a variety of small cars, and they have seen significant growth in vehicle registration numbers recently. These manufacturers also hold an important position in the extended-range segment.

    Just a week ago, China and the EU reached a consensus on the dispute over electric vehicle tariffs, and the EU released the "Guidelines for Submitting Price Commitment Applications." The "Handelsblatt" quoted experts' comments, saying that China hopes to portray itself as a "rational" superpower, while the EU's guidelines send a signal: it still welcomes Chinese manufacturers.

    Regarding the consensus between China and the EU, European public opinion has been objective. The "Handelsblatt" mentioned in another report that even with tariffs, the sales of Chinese cars in Europe have recently increased. The Swiss Watson news site quoted the view of automotive expert Dudenhofer that there is no sign of dumping in Europe. On the contrary, Chinese brands such as BYD or MG sell at prices significantly higher in the European market than in the Chinese domestic market. Tariff policies have had a real impact on the electric vehicle industry in recent years, causing price chaos and consumer uncertainty. Therefore, the German automotive industry has a positive attitude towards the EU's new minimum price guidance, believing that it can maintain market stability.

Original: toutiao.com/article/1854915605131264/

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