The budget allocation is being adjusted, but "without changing the overall size of the program."

According to government estimates, the funding is enough to subsidize around 800,000 vehicles. Buyers can receive government grants of up to €6,000 per vehicle.

In early October, Germany's BAFA export control agency, which administers the scheme, said it had already approved 100,000 applications and paid out more than €430 million.

If applications continue at the same pace, spending could reach €1 billion in 2026. The federal budget originally earmarked just €803 million for the scheme in 2027, but the government now expects to pay out €1.7 billion — draining the fund.

So far, the government has given no indication of whether it intends to put more cash into the program.

Environment Minister Carsten Schneider said in October that demand had exceeded all expectations. At the same time, he sought to reassure prospective buyers that there is enough money in the program to continue funding through 2027.