CSU pushes to reshape EV subsidies as Chinese and foreign brands dominate uptake

· Politics DEU

Germany's Christian Social Union is demanding changes to the country's €3 billion electric vehicle subsidy scheme after data showed foreign manufacturers capturing the bulk of early approvals. CSU parliamentary group leader Alexander Hoffmann called for ensuring that most value creation takes place in Europe, while Bavarian Premier Markus Söder said the programme, in force since mid-May, should be reviewed soon.

Of 103,542 applications received by the Federal Office for Economic Affairs and Export Control, Tesla, Skoda and Renault led approvals through June, with Volkswagen ranking only eighth among beneficiaries. More than half of applicants reported annual taxable incomes below €45,000.

The subsidy debate coincides with surging EV registrations. Battery electric vehicles accounted for 29.3% of all new car registrations in July, with more than 78,600 BEVs hitting the road — a 62% year-on-year increase. Chinese automaker BYD registered 5,240 vehicles in Germany in July, more than four times its figure from the same month last year.

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