The Portuguese government has announced a new program to support low-income families in purchasing electric vehicles. The program, set to launch in early 2027, will provide a subsidy of between 70% and 90% of the vehicle's value, up to a maximum of 15,000 euros. The initiative aims to help families with limited financial resources transition to cleaner transportation options. According to Environment Minister Maria da Graça Carvalho, the program will prioritize families with a social electricity tariff and those with incomes below 80% of the national median income.
The program will be funded by the Social Climate Plan, with an estimated 104.5 million euros allocated for the subsidy. The government expects to support the purchase of around 5,500 electric vehicles, with the potential to increase this number by up to 1,000 units. To be eligible, vehicles must be new or used with less than five years of age and purchased from a licensed dealer. The purchased vehicles cannot be sold for at least three years. The program will operate through vouchers that can be exchanged with car dealerships, similar to existing initiatives like the e-lar program.
The program is targeted at around 1.5 million households, which is double the number of current beneficiaries of the social electricity tariff. According to Minister Carvalho, over 20% of vulnerable families in Portugal own a car, with 24% residing in rural areas and 23% in urban peripheries. The government aims to reduce dependence on diesel and accelerate decarbonization efforts. The program will give priority to families with a social electricity tariff.
In addition to supporting low-income families, the government will also provide funding for microenterprises to purchase electric vehicles. Around 9,000 microenterprises will receive support, with a total of 228 million euros allocated for the purchase of 13,700 electric vehicles. The subsidy will cover up to 100% of the vehicle's cost, excluding VAT. Companies can apply for funding for one or two vehicles.
The government will also co-finance the purchase of 700 electric buses for low-density territories, with a total of 125.5 million euros allocated. These buses will be used for transportation of workers, students, and patients in these areas. In total, the government will support the purchase of over 21,500 electric vehicles. Minister Carvalho emphasized the importance of reducing dependence on fossil fuels and promoting sustainable transportation options.
The program for low-income families will accept applications for vehicles with a value of up to 37,500 euros. The subsidy can be increased by 1,000 euros if the applicant delivers a used vehicle for scrapping. The government is also considering providing financing for the installation of electric charging points. According to Minister Carvalho, the program will help reduce greenhouse gas emissions and promote a cleaner environment.
The initiative is part of a broader effort to promote sustainable transportation in Portugal. In June, the government launched a contest for 10 million euros to support the purchase of electric vehicles by the general public, which was oversubscribed in a few hours. The government aims to continue promoting the adoption of electric vehicles and reducing the country's carbon footprint.
Key points
- Portugal will provide up to 15,000 euros support for low-income families to buy electric vehicles.
- The program will prioritize families with a social electricity tariff and those with incomes below 80% of the national median income.
- The government will support the purchase of over 21,500 electric vehicles.
