Soaring Trend of EV Adoption in Germany's Auto Market
Approximately one out of every five newly bought cars in May were electric vehicles.
The electric vehicle (EV) revolution is sweeping across Germany's car industry, and it's evident with every fifth new car purchased in May being an electric vehicle. Despite Germany's overall auto market still not recovery from the pre-pandemic times, there's a noticeable uptick in demand for plug-in vehicles.
The German car market showed a slight growth in May, with a 1.2% rise in new registrations compared to the same month last year, according to the Federal Motor Transport Authority (KBA). However, the total number of new cars sold in the first five months of this year dropped by 2.4%. With the auto market still in crisis mode, EY's analysis suggests that the sales level is still more than a quarter below the pre-crisis level in May 2019, due to economic downturn, investment restraint, job concerns, and high new car prices.
However, the sales of petrol and diesel vehicles fell significantly in May, down 24% and 22% respectively. On the contrary, those with alternative drives increased by 18%. The sales of battery-electric vehicles (BEV) soared by 45% to 43,060 new cars.
This sharp rise in EV sales is partly due to manufacturers reducing the price difference between combustion engines and electric cars, offering attractive financing and leasing options, and tax incentives for commercial registrations. Yet, don't be fooled into thinking this is an electric boom for Germany or Europe as a whole.
Tesla, the market leader in EVs, experienced a drop in sales of more than a third to 1,210 units in May. Chinese automaker BYD overtook Tesla with 1,857 units, while Tesla's sales also fell significantly in many other European countries. Only in Norway did they increase significantly.
Volkswagen, BMW, and Mercedes increased their sales by over 5%, almost 10% respectively, while Audi saw a slight decrease. Opel's sales fell by 22%.
German car production, on the other hand, has significantly increased in May, with 363,600 passenger cars produced, marking an almost 20% increase compared to the previous year. In the first five months, 1.8 million cars were produced, an increase of 4%.
The EV market in Germany is expected to further expand at a Compound Annual Growth Rate (CAGR) of 16.2% and reach USD 56.30 billion by 2025 [4]. Factors like regulatory reforms, the expansion of charging and battery technology infrastructures, and a strategic shift in consumer and fleet behavior are driving this growth [4].
References:- ntv.de- jwu/DJ
- Automotive industry
- Automakers
- US automakers
- German automakers
- Tesla Motors
- Electromobility
- Economic situation
- Electric vehicles
In light of the surge in demand for electric vehicles (EVs), German communities could consider implementing policy changes to support vocational training programs for the production and maintenance of these vehicles, thereby preparing the workforce for the growing industry. Additionally, leisure activities in these communities could potentially include educational sports events that promote awareness about the importance of EV adoption for a greener future.
