E-Car Subsidies Primarily Reach Low-Income Households – The Left Party Calls for Expansion to Used Cars

Those who earn too much, however, get nothing: the income threshold for the subsidy is set at a household income of 80,000 euros. The program is therefore explicitly aimed at lower-income households and not at the general population.

A key figure from the subsidy practice to date is striking: as of July 10, 48 percent of approved applications went to households with a taxable income of up to 45,000 euros. Nearly half of all approvals thus went to the lowest income category of the program.

Accuracy in Reaching Low-Income Households

Jorrit Bosch, transport policy spokesperson for the Left Party parliamentary group, sees these figures as a positive signal. "Die ersten Zahlen zeigen, dass die soziale Staffelung zumindest teilweise greift: Fast die Hälfte der Bewilligungen entfällt auf die niedrigste Einkommenskategorie", said Bosch. At the same time, however, he warns against a one-sided record of success.

Bosch points to a persistent structural problem: even with the subsidy, many households remain effectively shut out from accessing an e-car. "Trotzdem bleibt das Grundproblem bestehen: Viele Menschen mit geringem Einkommen können sich auch mit staatlicher Förderung keinen Neuwagen leisten", he stated.

His central political demand is therefore: "Spätestens 2027 müsse daher die Förderung auch auf bezahlbare Gebrauchtwagen ausgeweitet werden". The share of used cars in the market is considered crucial to actually increasing the proportion of lower-income households in the transition to electric mobility.

The Left Party Calls for Expansion to Used Cars

A corresponding demand had previously already come from the federal states. The call to also provide state financial support for the purchase and leasing of used electric cars had previously been made, among others, by the Minister Presidents of Lower Saxony and Bavaria. The Left Party's initiative thus receives backing from two large, territorially extensive federal states.

The federal government, however, has so far not announced any concrete steps in this direction. "In der Bundesregierung gibt es dazu derzeit keine Pläne", the response states. It therefore remains open whether and when the subsidy will be extended to the used car market.

Federal Government Has No Plans for Expansion So Far

Bosch drew a clear conclusion from this standstill: "Andernfalls bleibt die Antriebswende trotz sozialer Staffelung für viele Menschen unerschwinglich." He thus fundamentally calls into question the effectiveness of the subsidies to date, unless used e-cars are included soon.

The subsidy program initially runs until the end of 2029, but can end early if the budget is exhausted. The funds currently available and the pace at which applications are submitted will therefore significantly determine the reach of the program in the coming years.

Overall, the federal government's response paints a mixed picture: the social accuracy of the subsidies is relatively high according to the available figures, but the share of low-income households reached remains limited due to the exclusion of used vehicles. The political debate over an expansion is therefore likely only just beginning.