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According to Bloomberg, as signs of a sluggish electric vehicle market gradually spread, German pure electric vehicle sales are expected to decline for the first time in eight years.
On January 30, the German Automobile Association VDA said that shipments of pure electric vehicles in Germany are expected to fall by 14% this year to 451,000 units as subsidy cuts for electric vehicles drag down demand.
Germany’s pure-electric car sales last fell in 2016 and have climbed every year since. in 2023, the country sold more than 524,000 pure-electric cars, outpacing sales in other European markets. If there is a 14 % decline in pure electric car sales this year, the market share of pure electric cars is expected to slip to 16 % from around 18 % in 2023.
In addition, overall car sales in Germany in 2024 are expected to be 25 % below pre-outbreak levels and will be slower than the recovery in the global passenger car market. According to the VDA, global passenger car sales are expected to grow by 2 % this year to 77.4 million units, close to the pre-epidemic level of 78.8 million, Reuters reported. However, German passenger car sales are expected to slip 1 % to 2.82 million, still a quarter less than before the epidemic.
Manuel Kallweit, chief economist at the VDA, said supply chain issues have largely been resolved, but the business environment facing German carmakers remains challenging.
According to the VDA, sales of electric cars in Germany fell by 16 % in 2023 and are expected to fall by a further 9 % by 2024. Of these, sales of plug-in hybrids will grow from 176,000 to 185,000 units. However, production of electric cars in Germany is expected to grow by 19 % this year to 1.45 million units, most of which will be exported.
Germany is Europe’s largest auto market and has been one of the main drivers of EV popularity, but inflation, high car prices and inadequate charging infrastructure are curbing market demand for electric vehicless, leading many manufacturers to delay the launch of new EV models and leasing companies to reduce purchases of electric vehicless. Groupe Renault this week abandoned plans for a public listing of its electric car business due to slowing market demand and the brutal nature of the initial public offering (IPO) market.
