Germany’s generous electric car grant includes plug-in hybrids - could the UK follow?

Germany has just rolled out a generous new subsidy for electrified vehicles, but unlike the UK equivalent it has controversially included plug-in hybrid cars. While a pure electric vehicle (EV) purchase could net German households up to a chunky €6,000 (around £5,200) off the list price, buyers of PHEVs are also eligible for grants of up to €4,500.

This bold move, set to cost the German government almost €3 billion (£2.6bn), is designed to put 800,000 more low-emission cars on German roads. For PHEVs to qualify, they must meet a strict minimum of 80km (50 miles) of pure-electric driving range which will help drivers maximise their zero-emission use. There are other stipulations determining the size of the grant awarded for all cars based on the cost of the car and the number of children in the family buying it.

However, don't hold your breath for a similar scheme in the UK. Unlike the German subsidy, the UK's existing Electric Car Grant (ECG) is strictly limited to fully electric models. Furthermore, experts are highly critical of extending subsidies to hybrids. Professor Peter Wells from Cardiff University stated that evidence shows PHEVs’ real-world carbon emissions are often much worse than official figures because owners often fail to plug them in, arguing that a subsidy “sends confusing messages to the market” and would undermine the UK’s transition to pure EVs.

The UK’s path is already looking quite different. While Germany is extending road tax exemptions for electric cars, the UK Chancellor recently announced that electric cars will be subject to a new pay-per-mile tax from April 2028. This contrasting approach has added to current uncertainty over the long-term running costs for UK EV owners.

If you happen to be buying a car in Germany, the German arm of our parent company Carwow can help...