Finance
Germany includes cars with range extender in EV subsidies programme
Published by Global Banking & Finance Review®
Posted on January 19, 2026
2 min readLast updated: January 19, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 19, 2026
2 min readLast updated: January 19, 2026
Germany expands EV subsidies to include range extender vehicles, offering up to €6,000 per car to boost sales and support the auto industry.
BERLIN, Jan 19 (Reuters) - Germany will make cars with range extenders eligible for subsidies under a previously reported scheme to assist small- and medium-income households in their purchases of new electric cars, the environment ministry said on Monday.
The government will pay between 1,500 and 6,000 euros ($1,700-$7,000) per car purchase, the ministry said, in a bid by Berlin to revive sluggish sales of one of the country's key industries. An outline of the scheme was previously reported by Bild newspaper on Friday.
A range extender is an on-board generator powered by a small combustion engine to recharge an electric vehicle's main battery pack.
Berlin has earmarked 3 billion euros ($3.5 billion) for the scheme, which will likely cover 800,000 subsidised vehicles until 2029, the ministry said, adding that applications can be submitted retroactively for new registrations from January 1.
Imported cars, also those made in Germany's major auto-making rival China, would not be excluded from the financial support programme, Environment Minister Carsten Schneider said during a press conference.
"We will rise to the challenge of the competition and are not imposing limits in that regard," he said, adding that German carmakers had a strong product offering.
($1 = 0.8610 euros)
(Reporting by Holger HansenWriting by Ludwig BurgerEditing by Miranda Murray and Linda Pasquini)
An electric vehicle (EV) is a car that is powered by electricity instead of gasoline or diesel. EVs use electric motors and batteries to operate, offering a more environmentally friendly alternative to traditional vehicles.
A range extender is a small combustion engine that generates electricity to recharge an electric vehicle's battery while driving, effectively increasing the vehicle's range beyond its battery capacity.
The purpose of EV subsidies is to encourage the adoption of electric vehicles by making them more affordable for consumers, thereby promoting sustainability and reducing carbon emissions.
Including imported vehicles in subsidy programs promotes competition, ensures consumer choice, and encourages manufacturers to improve their offerings, ultimately benefiting the automotive market.
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