Automotive News Europe — 2026-05-28
Automotive Industry
A record number of German drivers switched to an electric vehicle in the first quarter after the government launched a major subsidy program that can shave as much as €6,000 ($6,967) off the price of a new car.
The share of drivers replacing their combustion-engine cars with EVs rose to 7.5 percent in the period, from 6.3 percent the previous quarter, according to a survey for insurer HUK-COBURG published May 28.
That was the highest figure since the poll began in early 2020.
About a fifth of respondents cited the new subsidy as having a direct impact on their purchase, while a little more than 10 percent said the state aid meant they were considering purchasing an EV for the first time.
Through April, the market share for full-electric cars in Germany rose to 23.7 percent from 17.3 percent during the same period last year, according to figures from market researcher Dataforce.
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Chancellor Friedrich Merz’s ruling coalition introduced new purchase and leasing incentives for zero-emission vehicles worth €3 billion from the start of this year through 2029 and targeted at low- to middle-income households.
As well as EVs, they also apply to plug-in hybrid electric vehicles and extended-range EVs, part of a broader effort to support the nation’s auto sector as it struggles with high energy costs and strengthening Chinese competition.
When PHEVs and EREVs are included with BEVs, the market share for models sold through April that could potentially be covered by the incentives rose to 34.6 percent from 27.2 percent after four months of 2025.
European manufacturers have been grappling with uneven EV demand in recent years and are lobbying hard against the European Union’s proposed carbon-emissions rules to try to ease mounting pressure on the industry.
They are also hamstrung by structural disadvantages including limited access to locally made batteries and tangled bureaucracy, while drivers are facing a surge in fuel costs due to the Middle East conflict.
Jörg Rheinländer, a HUK-COBURG board member responsible for motor insurance, said the German subsidy “is clearly having an impact within the target groups.”
The program provides subsidies of €1,500 to €6,000, depending on the vehicle and a family’s size and earnings, and the government estimates the funds allocated will be enough for about 800,000 cars.
“There are therefore strong indications that extending this subsidy to used electric cars as well could significantly reinforce this trend,” Rheinländer added.
HUK-COBURG’s quarterly survey is based on data from 14.5 million insured vehicles and responses from about 4,000 people to an online poll.