Cyprus is preparing to launch a new phase of its electric mobility subsidy programme, expected to be announced before the end of 2025. The initiative, financed with €4.5 million from the national Recovery and Resilience Plan, marks the fourth round of financial support for clean mobility since 2022 and reflects the government’s continued commitment to making zero-emission vehicles more accessible. Early indications suggest that the scheme will be directed mainly towards the purchase of new battery-electric vehicles, with approximately 450 grants to be awarded.
According to national media reports, the forthcoming programme places strong emphasis on supporting new zero-emission cars, with a subsidy level set at €9,000 per eligible vehicle. By prioritising new rather than used imports, authorities aim to encourage the renewal of Cyprus’ vehicle fleet with the cleanest available technologies. This approach also responds to requests from the national association of vehicle importers, which has highlighted the importance of stable and timely incentives to support the market. Importers report that they have already ordered significant stocks of new electric vehicles in anticipation of the new programme, and they warn that delays in activating incentives could negatively affect both consumer confidence and business operations.
The new measure is being shaped by the Ministry of Transport, Communications and Works in cooperation with the Department of Road Transport. Preparatory work is underway to design the application and verification procedures, building on lessons from the first three rounds of support. Between 2022 and early 2024, these earlier schemes allocated €26 million in EU funds and approved 3,200 applications. The continuation of RRF-backed support illustrates the central role of EU recovery funding in the development of Cyprus’ clean mobility ecosystem.
The market context further supports the need for sustained incentives. Vehicle registration data from the Statistical Service of Cyprus show that electric mobility is growing, albeit from a modest base. In the first nine months of 2025, electric vehicles accounted for 4.7% of new registrations, rising from 3.6% in the same period of 2024. Hybrid vehicles meanwhile reached a record 44% share. Overall passenger car registrations increased by 26.8% in September 2025 year-on-year, with total vehicle registrations reaching 40,212 in the period January–September, an increase of 3.6% compared with 2024. At the same time, the market share of petrol and diesel vehicles continued to decline, confirming a gradual shift towards electrified drivetrains across the fleet.
This pattern of growth, coupled with Cyprus’ historically low EV penetration compared to the EU average, underscores the relevance of targeted financial support. The new scheme is expected to stimulate demand in the short term while assisting the country in meeting longer-term climate and transport objectives aligned with EU regulations, including the CO₂ standards for cars and vans and the broader framework of the European Green Deal. By focusing on zero-emission technologies and maintaining affordability for consumers, Cyprus aims to accelerate the transition to cleaner mobility while improving air quality and supporting market stability.
The upcoming subsidy programme represents an important step in sustaining momentum at a critical moment for the Cypriot automotive sector. With new electric models entering the market and importers preparing for stricter emissions requirements from 2025 onwards, the availability of incentives is likely to play a decisive role in strengthening consumer confidence and ensuring the successful expansion of zero-emission mobility in the years ahead.
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Views and opinions expressed are those of the author(s) and do not reflect those of the European Commission.
