A significant decline in sales
Germany, known for its dynamism in automotive innovation, is currently going through a difficult period for its electric car market. According to a recent survey by the German Automobile Industry Association (ZDK), the demand for electric cars has dropped significantly since the beginning of 2024. Orders for 100% electric cars have decreased by 47% compared to 2023. Plug-in hybrid vehicles have not escaped this trend with a 37% decrease in sales.
Even the American manufacturer Tesla, despite its successes of the previous year, sees its sales decline. At the same time, demand for diesel and gasoline vehicles has increased by 24%. The reasons for this trend, according to dealers, are mainly the high cost of electric cars compared to their thermal equivalents.
The reasons for the decline
The removal of the environmental bonus at the end of 2023 has strongly impacted the German electric car market. This phenomenon is not unique to Germany; countries like the United Kingdom have also observed similar declines after the end of subsidies. Furthermore, the high cost of electricity in Germany, around €0.46/kWh, also contributes to making the use of electric cars less attractive.
It is important to note that only 9% of dealers attribute this decline to “reservations” about battery technology, which means the concerns are more economic.
The challenges of the German automotive industry
Professional Statements
Arne Joswig, president of the ZDK, calls on manufacturers to adjust their pricing strategies to stimulate the market. He advocates for a price reduction and more attractive leasing offers. He also emphasizes the importance of developing the charging infrastructure, a psychological barrier for many potential buyers.
Comparison with France
Unlike Germany, the French electric car market continues to grow. This difference is explained by more progressive subsidy policies. France maintains a significant ecological bonus and has introduced “social leasing” to make electric vehicles more accessible. Additionally, the cost of electricity in France is much lower, around €0.21/kWh, which reinforces the attractiveness of electric cars.
French manufacturers like Renault and Stellantis have adopted a more agile strategy, allowing them to quickly offer accessible electric models. Conversely, Volkswagen, a German giant, has delayed the introduction of more economical models and even suspended production of the Q8 e-tron in Brussels.
Future perspectives
By 2035, car manufacturers in Europe will have to stop selling new thermal and hybrid cars. Despite this, economic uncertainties and technological developments will continue to influence the electric car market. The decisions made today by manufacturers and governments will play a crucial role in the future direction of the market.
