German Media: Will German EV Subsidies First Benefit Chinese Brands? Environment Ministry: No Evidence So Far
Recently, some German media outlets cited car dealers claiming that the government’s newly launched electric vehicle (EV) purchase subsidy primarily benefits lower-priced Chinese brands. In response, Germany’s Federal Environment Ministry stated that preliminary assessments of the first batch of applications show Chinese vehicles account for less than 15%, though it is too early to draw representative conclusions.
The German Environment Ministry said that, based on initial applications for this year’s new EV purchase subsidy program, there is currently no indication that Chinese brands are disproportionately benefiting. A ministry spokesperson said on Wednesday (June 17) that preliminary analysis shows Chinese-made cars make up less than 15% of the first applications. However, due to the limited number of approvals so far, a representative conclusion cannot yet be drawn.
The German EV purchase subsidy has income caps for applicants and offers a maximum of €6,000 in support. The application website was only launched one month ago, although eligible purchase dates can be traced back to January 1, 2026.
Last week, the magazine *Wirtschaftswoche* interviewed a major German car dealer who claimed the EV purchase subsidy in Germany particularly favors Chinese brands, as consumers applying for subsidies mainly choose EVs priced between €20,000 and €30,000—where Chinese brands currently dominate.
The EV purchase subsidy initiative, introduced by German Environment Minister Carsten Schneider (SPD), launched on May 19. The German government has allocated €300 million for this program, which is expected to fund subsidies for up to 800,000 vehicles before 2029.
A spokesperson from the German Environment Ministry said the department is closely monitoring the development of the program and will take action if adjustments become necessary. While current EU laws do not allow for straightforward preferential treatment of European-made vehicles, discussions at the EU level are underway regarding potential changes under the framework of the *Industrial Acceleration Act*. The spokesperson added that the German Environment Ministry remains open to exploring new possibilities for targeted support of European products.
France’s “Environmental Score” System
According to reports by electrive, a German EV industry website, France effectively excludes Chinese automakers from its support programs through its so-called “environmental scoring” system. The report explains that France’s incentive scheme uses a complex scoring mechanism—known as the “environmental score”—to assess a vehicle’s entire carbon footprint from production to transportation. Due to the high proportion of coal-based power generation in China’s grid and the long-distance shipping via massive cargo vessels from China to Europe, Chinese-made vehicles carry a significantly larger carbon footprint, making it difficult for them to meet the criteria set by this system.
Source: DW, drawing on information from Reuters, Wirtschaftswoche, Handelsblatt, and others
Original article: toutiao.com/article/1868653603395584/
Disclaimer: This article reflects the personal views of the author