German EV subsidy scheme triggers political debate over Chinese brand benefits (euobserver.com)

• Germany's new €3bn EV subsidy scheme criticized for allegedly favoring Chinese brands, but data shows only ~15% of applications are for Chinese vehicles.
• The scheme targets affordable vehicles under €30,000, benefiting Chinese brands like BYD, while previous subsidies (ended 2023) mostly helped expensive models.
• Volkswagen, a major beneficiary of the old scheme, is now cutting 100,000 jobs and closing four factories, citing competition struggles.

"Germany's new €3 billion electric vehicle subsidy, launched in May 2026, has drawn criticism from some CDU/CSU and SPD politicians who argue it disproportionately benefits Chinese brands. However, initial data shows less than 15% of applications are for Chinese vehicles. The scheme targets households likely to spend under €30,000, a price point where Chinese models like BYD are competitive. This contrasts with Germany's previous subsidy program, which ended in 2023 and primarily benefited Volkswagen, Mercedes, and Tesla. That scheme provided €860 million to Tesla buyers alone. Volkswagen is now cutting 100,000 jobs and closing four factories."