E-Car Subsidies: Germany's Push for Lower-Income Households
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E-Car Subsidies: Germany’s Push for Lower-Income Households

The German Environment Agency (UBA) has urged policymakers to implement targeted purchase incentives for electric vehicles ahead of the cabinet’s approval of the 2026 budget this week. UBA President Dirk Messner, in remarks published in the “Neue Osnabrücker Zeitung”, emphasized the necessity of subsidies specifically designed for the 30-40% of households with the lowest incomes. He cautioned that without such support, the transition to electric mobility risks stalling and becoming a point of contention for those unable to afford it.

Messner further stressed the need for increased investment from the special fund dedicated to expanding the charging infrastructure. Addressing concerns about the availability of charging stations is crucial, he stated.

The UBA President also highlighted the importance of affordability within the electric vehicle market. He warned that unless German and European manufacturers offer vehicles at competitive prices, consumers may increasingly turn to electric vehicles produced in China, particularly as the cost of gasoline rises due to carbon pricing.

Messner expressed optimism about the possibility of decarbonizing the entire transportation sector by 2045. He believes this goal can be achieved through a combination of expanding public transportation and electrifying private vehicles. He strongly cautioned against any attempts to reverse the planned ban on the registration of new diesel and gasoline vehicles starting in 2035, advocating instead for a clear commitment to the electrification of individual transportation. Messner affirmed that electric vehicles represent the future, a view he stated is widely supported within both the scientific community and the automotive industry, concluding with a renewed call to prioritize financial assistance for low-income households to facilitate their participation in the electric vehicle transition.