Government incentive boosts EV adoption, particularly among young drivers and families

Coburg – The transition from internal combustion engine vehicles to electric cars by private individuals in Germany reached new heights in the first quarter of 2026. March, in particular, saw a substantial increase in these shifts, as revealed by the latest HUK-E-Barometer from HUK-COBURG.

During the entire first quarter, 7.5 percent of all car switches were to EVs, representing an increase of over one-third compared to the full year 2025. The proportion in March alone was 60 percent higher than the average for 2025. Among younger drivers under 40, the shift was even more pronounced, with a nearly 95 percent higher rate of switching to EVs in March compared to the 2025 average.

A representative survey conducted as part of the barometer sheds light on the reasons behind this growth. Approximately 18 percent of all polled drivers indicated that the new government incentive for electric cars has a direct impact on their purchasing decisions. Eleven percent are now considering purchasing a pure EV for the first time due to the subsidy, and seven percent are likely to bring forward a planned purchase.

The incentive appears to have a particularly strong effect on price-sensitive customers. In the under-40 driver group, nearly three times as many responded positively to the new EV subsidy compared to older drivers (31% vs. 12%). Parents with minor children also expressed significantly more positive sentiments (32% vs. 14% without minor children).

Dr. Jörg Rheinländer, a board member at HUK-COBURG responsible for automotive insurance, commented that the government's targeted incentives are clearly effective. "Expanding the subsidies to include used EVs could further bolster this trend," Rheinländer stated. With a growing supply of more affordable used EVs, there is significant potential in this market segment.