- The decision is a major boon for affordable Chinese automakers like BYD that are steadily gaining ground in the European market.
- Germany’s new subsidy program offers payments ranging from 1,500 to 6,000 euros, primarily targeting low- to middle-income buyers.
(A BYD Han L EV displayed at the Shanghai auto show in April 2025. Image credit: CnEVPost)
The German government’s 3-billion-euro (about $3.5 billion) subsidy program to boost electric vehicle (EV) sales will be open to all manufacturers, including Chinese brands, according to a Bloomberg report on Monday.
Announced Monday, the incentive aims to drive EV adoption and support Europe’s largest auto market, where demand has sharply declined since the previous subsidy policy expired at the end of 2023.
While the German government seeks to support domestic automakers, it will impose no country-of-origin restrictions, the Bloomberg report noted.
“I cannot see any evidence of this postulated major influx of Chinese car manufacturers in Germany, either in the figures or on the roads — and that is why we are facing up to the competition and not imposing any restrictions,” German Environment Minister Carsten Schneider said at a Monday press conference.
The decision is a major boon for affordable Chinese automakers like BYD (HKG: 1211, OTCMKTS: BYDDY) that are steadily gaining ground in the European market, the report noted.
Germany’s green-light for Chinese EVs stands in stark contrast to other nations’ approaches. In the UK, subsidies introduced last year effectively excluded Chinese battery-powered vehicles, while France’s so-called social leasing scheme includes similar restrictions.
Germany’s new subsidy program is expected to support the purchase of about 800,000 vehicles by 2029, according to the environment ministry. Subsidies range from 1,500 to 6,000 euros, primarily targeting low- to middle-income buyers.
Germany maintains strong diplomatic ties with China. German automakers are among the most significant players in China’s automotive industry.
Over the past years, China’s policies — including purchase subsidies and purchase tax reductions — have not excluded models or automakers from specific countries.
Whether German automakers like Volkswagen or American automakers like Tesla (NASDAQ: TSLA), all enjoy national-level purchase incentive policies in China on par with domestic automakers.
Both sides agreed it is necessary to provide general guidance on price undertakings for Chinese exporters shipping passenger BEVs to the EU.
($1 = 0.86 euros)
