Zhi Tong Cai Jing·2026-01-19 12:24Group 1 - The German government has launched a €3 billion (approximately $3.5 billion) electric vehicle subsidy program open to all car manufacturers, including Chinese brands, aimed at boosting electric vehicle sales in Europe’s largest automotive market [1] - The new subsidy policy, announced on Monday, is part of a broader stimulus initiative by the German government, following a significant drop in electric vehicle demand after the previous subsidy program ended in 2023 [1] - German Environment Minister Carsten Schneider expressed confidence in the quality of European and German brands, stating that there is no evidence of a significant influx of Chinese car manufacturers into the German market, leading to a decision to face competition rather than impose restrictive barriers [1] Group 2 - Germany's open attitude towards Chinese car manufacturers contrasts sharply with other European countries, such as the UK and France, which have implemented stringent standards that effectively exclude Chinese electric vehicles from their markets [2] - The new subsidy plan, initially disclosed in October of last year, is expected to facilitate the sale of approximately 800,000 electric vehicles by 2029, with subsidy amounts ranging from €1,500 to €6,000 based on household income, population size, and vehicle type [2] - Major automakers like Volkswagen Group and Stellantis are expected to benefit from this subsidy policy as they increase their focus on affordable electric vehicle models [2] Group 3 - The ruling coalition led by Chancellor Merz has extended the electric vehicle tax exemption policy until 2035, with the German Finance Ministry estimating a tax revenue loss of approximately €600 million by 2029 [3] - Chancellor Merz has publicly advocated for slowing down the EU's proposed phase-out of combustion engine vehicles [3]