in Germany, the worrying slowdown in sales of electric cars

While the EU has decided to ban the sale of combustion engine vehicles from 2035, sales of electric cars are falling significantly in Germany.

In January 2024, one in ten new cars sold in Germany was electric compared to almost one in five last year. In February, another decline: sales fell by 15.3% year-on-year. At this rate, it will be complicated, if not impossible, to meet the ambitious objective set by the government: 15 million electric cars on German roads in 2030, or 30% of the automobile fleet. HAS To date, only 2.8% of vehicles in circulation are electric models.

What slows down the development of electricity in Germany, cFirstly, there is the end of the government bonus for the purchase of an electric vehicle, which has put a halt to sales. In search of savings, the government eliminated this aid of 4,500 euros last December and which could even reach 7,000 euros with the additional bonus that manufacturers often offered. The measure made it possible to subsidize the purchase of just over two million electric cars in seven years.

Another system has disappeared: the aid paid when an individual installs a charging station. Since the end of this aid, one in three buyers have given up on electric vehicles and turned to a more affordable gasoline vehicle. Because in a context where inflation continues to weigh on household budgets, the price of electric vehicles remains an obstacle. In 2023, an electric car cost on average 52,700 euros – 4,000 euros more than in 2022 – compared to 44,630 euros for a thermal engine.

German car manufacturers increasingly facing competition on their own territory

It is Tesla’s Model Y – which has operated a factory near Berlin for two years – which remains the Germans’ favorite electric car. But it is above all BYD which is gaining momentum: for the first time, in the last quarter of 2023, the Chinese manufacturer sold more electric cars worldwide than Tesla. BYD has set a medium-term goal of 10% market share in Germany, by offering models at competitive prices. This tough competition forces national brands to fight and grant discounts, up to -15, -20%.

This is the whole challenge for German manufacturers: to offer accessible models to avoid being relegated to second place in this crucial market.

To try to resist, Volkswagen, BMW and Mercedes are granting discounts to sell off their stocks: -15%, -20%, sometimes -25%. This is the whole challenge for German manufacturers: to offer models accessible to the middle classes, to avoid being relegated to second place in this crucial market.