Members of Germany’s SPD parliamentary group have outlined detailed proposals to make electric vehicles more accessible for low- to middle-income buyers. The plan would introduce a purchase incentive of at least €3,000 for new and used battery-electric cars with a net list price under €45,000. From 2026 through 2029, eligible vehicles produced in Europe and meeting specified environmental standards would qualify for funding, with manufacturers or dealers matching the subsidy amount.
SPD transportation spokeswoman Isabel Cademartori and environment and economic policy speakers Jakob Blankenburg and Sebastian Roloff emphasized that electric cars are currently purchased predominantly by higher-income households. They argue that expanding affordability is essential to broaden adoption and ensure that environmentally friendly mobility benefits all segments of society. To boost confidence in the used-EV market, the proposal also calls for dealers to provide a complimentary battery health check when selling pre-owned electric cars.
In addition to the direct purchase incentive, the SPD experts recommend launching a tailored leasing program in 2027. This initiative would feature low monthly rates and an option to buy at lease end, specifically targeting individuals and small enterprises such as shift workers or mobile care services who rely on daily car use. The draft framework stresses the need for simplicity and minimal bureaucracy in the application process.
The suggestion comes as Germany’s ruling coalition sends mixed signals on transportation policy. While Chancellor Friedrich Merz has criticized the planned EU ban on new internal combustion vehicles from 2035, the federal government concurrently extended the exemption of electric vehicles from motor vehicle tax. Against this backdrop, SPD leadership from both the Union and SPD parliamentary groups has proposed allocating an additional €3 billion through 2029 to support the subsidy and leasing measures. Detailed modalities of the program are still under discussion.
The earlier national purchase subsidy for electric vehicles was abruptly discontinued at the end of 2023, leading to a significant drop in EV sales on the German market. These new proposals aim to reignite growth by addressing cost barriers and ensuring equitable access to zero-emission mobility.
Source: Der Spiegel
