Germany Launches €3bn EV Support Initiative for Chinese Automakers

Germany has unveiled a new €3 billion electric vehicle (EV) support initiative to stimulate the automotive market. This program aims to assist all manufacturers, including those from China, as part of the government’s commitment to enhance the EV sector.

Overview of the EV Support Program

The support initiative will be valid retroactively from the start of 2023 and will continue until 2029. According to Environment Minister Carsten Schneider, the goal is to bolster the German and European automotive industries without imposing geographic restrictions.

Funding Details

The program is designed to finance the purchase or lease of approximately 800,000 new vehicles. Subsidies will be targeted toward lower and middle-income earners. Depending on household size and taxable income, recipients can receive between €1,500 and €6,000.

• Eligibility includes new electric vehicles and plug-in hybrids.
• Subsidy amounts vary based on household income.

Market Context

This new support scheme responds to demands from car manufacturers, following the previous program’s abrupt end in 2023, which had contributed to a 27% drop in battery car sales in Germany the following year. However, the market has shown signs of recovery, with around 545,000 new battery vehicles registered in 2025.

Chinese Automakers in Germany

While Chinese car manufacturers have made progress in gaining a foothold in the German market, their overall share remains limited compared to domestic brands. For instance, BYD sold around 23,000 vehicles in Germany in 2025, a significant increase from the previous year but still representing less than 1% of the total market.

Comparative Analysis with Other European Markets

The German government’s approach differs markedly from that of other European countries. For example, the UK’s EV purchase program has implemented restrictions that limit access for Chinese manufacturers.

The German carmakers’ lobby group, VDA, has expressed support for the new initiative. However, they caution that it may only serve as a temporary solution unless the government improves infrastructure. A robust charging network and affordable energy options are critical for sustaining the growth of electromobility in Germany.

Conclusion

The €3 billion initiative represents a significant move by Germany to enhance its electric vehicle sector. As the government opens its doors to manufacturers from all over, the focus will remain on ensuring a competitive landscape while addressing infrastructure needs for future growth.