Electric slide: EV sales hit reverse in 2024. Electric vehicle car logos on a smartphone screen. Tesla Motors, BYD auto, BMW, Hyundai, Geely, Volkswagen, Mercedes BENZ, Wuling Motors and Volvo.
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Germany’s once-buzzing electric car market has suffered a spectacular blowout, with sales plunging by a staggering 27.4 per cent last year (2024). Official figures reveal that just 380,609 battery-powered vehicles were registered in Europe’s largest auto market in 2024, marking a stark ‘lost year for electro-mobility.’
EV subsidies scrapped, high hopes fizzle
After years of steady growth, the wheels came off the EV boom when government support vanished in 2023, leaving potential buyers stranded. According to analysts, the sudden end of subsidies created massive uncertainty. High prices, limited range, and Germany’s patchy charging network have left many buyers stalling at the starting line.
Volkswagen job cuts
Volkswagen, the heavyweight of Europe’s auto industry, is feeling the strain. In a desperate bid to steady the ship, VW struck a deal with unions to slash production capacity by 730,000 units and cut 35,000 jobs. The drastic move aims to keep its electric ambitions afloat.
Yet, despite its troubles, Volkswagen held on to the top spot, in terms of new registrations. Meanwhile, US rival Tesla stalled, its market share slipping from 2.2 per cent to just 1.3 per cent. The ‘Cybercab’ may have dazzled Berlin shoppers, but only 38,000 units actually hit German roads.
While Chinese brands like BYD, XPeng, and MG Roewe are spooking rivals across Europe, they’ve barely made a dent in Germany. Combined, they shifted a modest 25,000 cars.
Traditional cars still rule over electric vehicles
Traditional engines are still revving louder than EVs. Electric cars accounted for only 13.5 per cent of sales in 2024, a drop from 18.4 per cent the year before. Meanwhile, hybrids surged by 12.7 per cent, with nearly 950,000 registrations. Consumers, it seems, are hedging their bets.
Where are the subsidies?
The looming German elections could see a U-turn on electric car support. Chancellor Olaf Scholz, who axed the previous scheme, is now touting a European-wide subsidy programme. Opposition politicians are also calling for action, criticising the EU’s planned combustion engine phase-out.
Without strong incentives, Gall warns the sector might not recover. Price cuts could lure buyers back, but a real paradigm shift remains elusive. Time, it seems, is running out for Germany’s EV ambitions.
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