New version of the environmental bonus decided

The German government is realigning the subsidy for electric vehicles. By the end of the year, the purchase premium for plug-in hybrids is to be phased out without replacement, as only vehicles that can be shown to have a positive climate protection effect will be subsidized. But the level of the environmental bonus for BEVs will also be adjusted.

From 2023, the following will apply: Electric vehicles costing less than 40,000 euros will still be subsidized by the state to the tune of 4,500 euros instead of the current 6,000 euros. Electric vehicles with a purchase price of between 40,000 and 65,000 euros will still be subsidized with an environmental bonus of 3,000 euros. From 2024, there will still be a 3,000 euro subsidy for a vehicle net list price of up to 45,000 euros; vehicles with a higher net list price will no longer be subsidized at all.

Furthermore, from September 2023, only private individuals will be able to apply for the environmental bonus. An exception for small businesses and non-profit organizations is currently still being examined by the BMWK. 

According to the ministry, the date of the subsidy application will continue to be decisive for the subsidy. The manufacturers' share will continue to be 50 percent of the total federal funding and will be added when determining the total funding. Once the funds for the environmental bonus from the Climate and Transformation Fund are exhausted, the environmental bonus funding will end.

"Electromobility has made the transition to the mass market: the 1 million target was reached in 2021 and this year we will already be close to two million. E-vehicles are therefore becoming increasingly popular and will no longer need government subsidies in the foreseeable future. But we have to shape the transition, and that's exactly what we're doing with the redesign of the subsidy," says Federal Economics Minister Robert Habeck (Grüne), explaining the reasons for the subsidy regulations that have been adopted.