German electric car market set for a 14% decline amid pricing, infrastructure woes
As Europe's largest car market, Germany has felt the impact of high inflation and coupled with attention-worthy prices of electric vehicles and under-developed charging infrastructure that, while still superior to that in Poland, has rendered customers hesitant to purchase, according to Automotive News Europe. Concurrently, it's worth noting that government subsidies for electric vehicles were terminated in December.
Jan 31, 2024 | updated: 4:37 AM EST, March 7, 2024
The German Association of Motor Vehicle Manufacturers projects a 14% decrease in sales for all-electric vehicles, amounting to about 451,000 units sold. A sharp downturn from its previous year's sale of 524,000 BEV-type vehicles in 2023.
In response to shrinking demand, manufacturers have begun delaying the debuts of new models. Moreover, car rental companies are discontinuing their supply of electric vehicles. This is attributed to a fierce price war that has triggered a rapid depreciation in used electric vehicles' values, leading to financial losses.
Notwithstanding the bleak sales outlook, the Association noted that there is an anticipated 19% increase in the production of electric vehicles. These vehicles are intended to be exported outside the European Union.
