The German automobile market is in turmoil. For the first time in eight years, sales of electric cars risk falling in Germany. The signs of an electric collapse in 2024 are there.
The tide is turning in Germany for electric cars?
While the ecological bonus should have continued throughout 2024 in Germany, the Federal Government had to revise his plans. The German government was forced to end this financial boost precipitously. A difficult choice according to Robert Habeck, the German Minister of the Economy, who had no choice. “ The price to pay to stay the course of a plan that aims to fight climate change “, according to him.
Fiat 500 electric: drop in sales, production will be paused
This budgetary decision could well have disastrous consequences for the electric car market in Germany. If some manufacturers have announced that they will cover part of the bonus until March 31, this will probably not be enough. Sales of electric models expected to fall for the first time since 2016 according to VDA, the Union of the Automotive Industry in Germany. The organization has warned that a historic drop of 14% could occur this year.
End of the ecological bonus and weakness of the economy
Sales could stagnate at around 450,000 units in 2024 (compared to 524,000 in 2023). According to VDA, “ government subsidy cuts weigh on demand “. Yet Europe’s largest auto market has been one of the main drivers of the adoption of electric cars. The weakness of the economy as a whole, inflation, the still high prices of electric models, insufficient charging infrastructure…
This European automotive giant sees a sharp drop in orders for electric vehicles
So many elements which could contribute to the collapse of the electricity market in Germany. Weak signals are becoming more and more numerous. A certain number of manufacturers have postponed the launch of certain models. Rental companies are reducing purchases for their fleets. If VDA’s forecasts prove correct, the share of electric cars would fall to 16% in 2024, compared to around 18% in 2023. Other European markets are not currently affected by this trend.
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