The recent federal government subsidy program for electric vehicles now covers luxury models, some of which have six-figure list prices. According to statistics released by the Federal Office for Economic Affairs and Export Control (Bafa) and reported by ‘Handelsblatt,’ this includes vehicles such as 36 Porsche models, an electric Mercedes G-Class, an EQS 450+, and BMW models like the XM 50e and i7, which have been subsidized up until early August.
This is possible because while the program sets income limits for applicants, it does not impose an upper limit on the vehicle price. Furthermore, the subsidy guidelines stipulate that the owner, buyer, or leasing company do not need to be the same person.
However, ‘Handelsblatt’ has previously noted that the funding has been predominantly applied for by households with relatively modest incomes. The largest group of applicants reported a taxable household income of no more than €45,000. The eligibility thresholds are set at €80,000 of taxable annual income for single households and €90,000 for families.
Bafa stated that the Federal Ministry for the Environment is the responsible policy setter, though a response from the ministry is still pending. Overall, nearly 27,000 applications have been approved so far, meaning the luxury models remain fringe cases. The most commonly subsidized vehicles have been the Tesla Model Y, the Skoda Elroq, and the Tesla Model 3. Regarding brand origin, approximately 16 percent of approved applications were for German brands, with Volkswagen leading this group.
