GERMANY / EuroWire / — Automakers reduced their in-house discounts on electric vehicles in Germany in May, narrowing price support at a time when state purchase aid has returned for eligible private buyers. The average discount on the 20 best-selling electric models fell to 18.6% from 19.5% in January, according to the monthly new-car market report by Center Automotive Research.
The reduction widened the transaction-price gap between electric vehicles and comparable combustion-engine models, the report said. Electric cars were on average €1,971 more expensive than similar internal combustion engine vehicles before government subsidies were included. The figures cover market surveys of the most popular electric models and reflect manufacturer and dealer discounting rather than public support.
Discounts declined particularly for smaller electric vehicles, a category that is more likely to meet the requirements of households eligible for the revived subsidy program. The support applies to purchases and leases of new electric cars, certain plug-in hybrids that can operate on electricity and fuel, and electric vehicles equipped with range extenders.
Prices remain above combustion models
Eligibility for the subsidy requires a vehicle to have been registered from Jan. 1, 2026. The grant ranges from €1,500 to €6,000, depending on the vehicle, household income and family size. The income ceiling is €80,000 in taxable annual household income, with higher thresholds for families with children, and the premium is limited to private cars rather than company vehicles.
The program has a total allocation of about €3 billion and is intended to support up to 800,000 vehicles through 2029. Battery-electric vehicles receive the largest support, while plug-in hybrids and electric vehicles with range extenders qualify under separate technical conditions. A range extender is a small combustion engine used as an on-board generator to recharge an electric vehicle battery.
Registrations show stronger electric demand
The discount pullback comes as German electric-vehicle registrations have strengthened in 2026. Data from the Federal Motor Transport Authority, analyzed by the Association of International Motor Vehicle Manufacturers, showed 64,350 new battery-electric passenger cars registered in April, up 41.3% from a year earlier. Battery-electric vehicles accounted for 25.8% of German new-car registrations in April.
From January through April, 223,980 battery-electric cars were newly registered in Germany, also up 41.3% year on year, giving the segment a 23.6% market share for the first four months. Total new passenger-car registrations reached 948,567 over the period, up 4.5%, while plug-in hybrid registrations rose 17.6% to 103,660 vehicles.