The surplus of electric cars in Germany
Excess production
Electric cars represent the future, don’t they? However, in Germany, this future seems to have arrived too quickly. Currently, tens of thousands of these vehicles are stored due to lack of demand. In this country, famous for its love of automobiles and its prosperous industry, around 100,000 new electric cars are stockpiled according to an analysis by experts from Chemnitz.
A saturated market
The problem is clear: the production and imports of electric cars far exceed current demand. Many of these vehicles have not found buyers and remain stored near factories, at dealerships, or in ports. This concerns both German manufacturers and imports. For example, Tesla is currently producing too many Model Y at its factory in Grünheide near Berlin.
In Germany, the end of subsidies for electric cars in December 2023 has impacted demand. Generally, the electric car market suffers from prices that are still too high for many consumers. This situation is reminiscent of the United Kingdom, which recently eliminated the ecological bonus. In France, the government has adjusted the ecological bonus by introducing an environmental score.
The transition to electric
Switching to 100% electric is not easy. Consumers are still hesitant due to concerns such as battery range, lack of charging stations, and vehicle costs. This is not just a German problem; cars from China are also accumulating. China, the largest exporter of electric cars, sends vehicles from both domestic and foreign brands such as Tesla and Dacia.
Towards a price drop?
What can be done to solve this surplus? Experts believe that lowering prices is the only solution. Manufacturers need to make these vehicles more affordable to stimulate demand, which could result in significant discounts. These price reductions have already started, not only among Chinese manufacturers such as BYD and MG, but also among Renault, Toyota, Ford, and Volkswagen. Chinese manufacturers have room to further reduce their prices.