The climate and economy ministry, which was established when Germany's new government assumed office last week, stated that it would only pay payments beginning in 2023 for electric vehicles that have been shown to have a positive effect on climate protection.
This requirement will partly be met by a minimum distance that electric cars can travel using electric power.
The current system will continue to apply for the next year. Electric-only car buyers can get incentives up to 9,000 euro (about $10,200), and plug-in hybrid buyers qualify for incentives up to 6,750 euro.
Robert Habeck is Germany's new economy minister and climate minister. He said that the government wants to maintain "continuity" while implementing a new system.
He stated, "We will be more ambitious with support for the future, to boost electromobility further & strengthen climate protection."
Habeck is also a co-leader in the Green party, an environmentalist party. Habeck is also vice-chancellor in the three-party government led by center-left Chancellor Olaf Scholz. He took office Wednesday.
The government's new goal is to have 15 million fully-electric cars on the roads by 2030. It also wants to increase efforts to combat climate change by increasing the use of renewable energies and moving Germany's exit form coal-fired power from 2038 "ideally" to 2030.