Electric Car Sales in Germany Take a Nosedive
A dramatic shift in the electric vehicle (EV) market has taken place in Germany, with sales plummeting by a staggering 39% last month. This significant decline is attributed to the government’s decision to withdraw tax breaks, leading to a substantial decrease in demand.
A Broader European Trend
The impact of this decline is not limited to Germany, as the European Automobile Manufacturers’ Association (ACEA) reports a 10% drop in EV sales across Europe as a whole. This downturn follows a surge in sales the previous year, when subsidies for EV purchases reached a peak of €9,000 per car.
Market Share Shifts
As a result, EVs now account for 13% of the overall market share in 2024, trailing behind petrol cars and hybrid-electrics, which hold 33% and 31% of the market share, respectively. This shift in market dynamics is likely to have far-reaching consequences for the industry.
Manufacturers Hold Back Deliveries
Another factor contributing to the decline in EV sales is the strategic decision made by manufacturers to hold back deliveries. This move is aimed at ensuring that their EVs count towards the new emission standards being introduced by the European Union.
Germany’s Economic Challenges
The decline in EV sales is not an isolated issue, as Germany’s economy as a whole is facing significant challenges. The country’s economy has shrunk for the second year in a row in 2024, with a new survey from think tank ZEW revealing a decline in economic sentiment from 15.7 to 10.3 in December.
French EV Sales Also Suffer
France is another country experiencing a decline in EV sales, with a 20% contraction in December, according to ACEA. Like Germany, France is preparing to reduce subsidies for electric cars, which will likely further impact demand.
Global Competition Looms
The withdrawal of state support for electric cars in Europe raises concerns about the competitiveness of European models in the face of cheaper alternatives from China. However, Britain has emerged as Europe’s largest EV market for the first time last year, driven by tough net zero sales targets and steep discounts offered by manufacturers.
Leave a Reply