Electric mobility “has gone into reverse gear in Germany,” EY analyst Constantin Gall
Sales of new cars plummeted in Germany in August; official data showed on Wednesday. This was dragged down by a record fall in demand for electric vehicles in Europe’s biggest auto market.
A total of 197,322 new cars were registered in Germany in August, the KBA federal transport authority reported. This recorded a 27.8-percent drop from the same period in 2023.
This electric slump was partly down to a comparison effect with August 2023. A period which saw drivers rush to buy EVs before certain government subsidies ran out.
Electric mobility “has gone into reverse gear in Germany,” said EY analyst Constantin Gall. He added that he saw little improvement ahead.
“Customers currently prefer combustion engines — if they decide to buy a new car at all,” he said. He predicted that EV sales this year would be “significantly” lower than in 2022 and 2023.
The weakening EV demand has certainly fueled concerns about the wider car industry. This week, auto giant Volkswagen made the shock announcement that it was considering closing plants in Germany for the first time.
Volkswagen’s Audi subsidiary in July announced the possible closure of its Brussels plant for making electric vehicles.
German Labour Minister Hubertus Heil on Wednesday pledged new government incentives to purchase EVs.
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