The allocated funding for electric car purchases is clearly depleting much faster than the federal government had initially predicted. While the 2027 federal budget originally included only 803 million euros, the black-red coalition now anticipates outflows of 1.72 billion euros in the coming year alone, according to the draft submitted for the 2027 budget cleanup session.
The accompanying document explains that the e-car funding mechanism developed significantly more dynamically than was initially conceived or accounted for in the original planning phase. Consequently, the targeted budget amount will be adjusted. However, the draft specifies that the total program volume remains unchanged, meaning the federal government still intends to provide a total of three billion euros for the subsidy program.
Originally, the socially stratified purchase premium for electric vehicles was slated to run from 2026 through 2029. Under previous governmental statements, the allocated funds were estimated to cover around 800,000 subsidized vehicles.
The current surge in demand is substantial. In early October, the relevant Federal Office for Economic Affairs and Export Control (Bafa) reported that it had already approved 100,000 applications and disbursed more than 430 million euros. If this relentless rate of applications continues, an estimated one billion euros could flow out this single year. Individual vehicles are eligible for a subsidy of up to 6,000 euros. Government Environment Minister Carsten Schneider (SPD) had previously stated in October that the rush was exceeding all expectations.
