The Future of Electric Cars in Germany: Market Share Decline and Potential Revival

2023-09-03 09:22:02

MUNICH (dpa-AFX) – According to industry experts, the market share of electric cars in new registrations in Germany is set to decline sharply next year. The reason for this is the reduction in state purchase subsidies. Ahead of the IAA motor show in Munich (September 4-10), Volkswagen and BMW are confident about future demand for electric cars. The ADAC automobile club, on the other hand, believes that a longer start-up phase with taxpayers’ money is necessary.

Consulting firm Deloitte predicts a one-third drop in electric car sales in Germany in 2024. One of the reasons would be the end of purchase bonuses for professional owners in September and the phasing out of bonuses for private buyers by the end of 2025.

“Furthermore, higher rebates for combustion vehicles could jeopardize the federal government’s goals for ramping up e-mobility,” write industry experts. Instead of the targeted 15 million electric cars, there are only expected to be 11.7 million on the roads in 2030. It isn’t until 2026 that Deloitte predicts electric cars will account for more than 30 percent of the market. new registrations. Consultancy PwC estimates that by 2027 the majority of new cars will be electric, as the cost advantages of electric cars over combustion cars will then take hold.

Volkswagen hopes the IAA will revive demand for electric cars, which has faltered recently. “By 2027, we will launch eleven new electric models on the market as a brand,” said brand manager Thomas Schäfer in an interview with the German press agency Deutsche Presse-Agentur. The main brand manager wants to stay the course on electric despite the recent slowdown in demand. “We assume that the share of electric cars in Europe will increase significantly in the coming years,” Schäfer said. He called the fact that the craze has recently waned as an intermediate low.

BMW wants to sell 15 percent of its cars with electric drive this year, and in 2026 this figure should already reach 33 percent. With the New Class, BMW places its electric vehicles on a platform specially developed for electric cars. The first models with 30 percent more battery life, 30 percent faster charging speed and new software are expected to be on the market from the end of 2025.

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CEO Oliver Zipse said on Saturday that BMW was already making no less money from its electric cars than from its petrol and diesel cars. The production is certainly more expensive, the costs are higher – but “the assumption that combustion cars are always more profitable than electric cars is completely wrong”, he said in Munich. “We are now making money with every electric car, and this will be even more the case with the New Class”.

Christian Reinicke, President of the ADAC, believes that the prospects for electromobility are not yet so favorable. According to him, the government should not reduce the demand for electric cars, but expand it. “In my opinion, a reliable and continuous demand from the state is the key to convincing people to go electric,” Reinicke told the Bavarian media group newspapers.

“The policy should continue the demand for electric cars beyond 2024. And do so reliably until the end of the decade. Also remove the annual cap on the claim.” In the second half of the year, there is a clear reluctance to buy cars, “because people fear that the debt funds have already been exhausted”.

## Rectification

– In the 5th paragraph, 2nd sentence, delete the word “first time” /rol/DP/he

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