Manufacturer and Dealer Registrations Inflate Electric Vehicle Sales Figures

The reported growth in electric vehicle (EV) registrations in Germany has been significantly influenced by manufacturers and dealerships registering vehicles to themselves, rather than reflecting genuine market demand. Data from the Federal Motor Transport Authority indicates that, in the first ten months of this year, nearly one in four newly registered battery electric vehicles (BEVs) were registered by manufacturers or dealers. This is a notable increase compared to two years ago, when only one in six BEVs were registered in this manner.

These self-registrations serve to artificially boost sales figures, helping companies meet internal targets despite subdued interest from private and business customers. As a result, the numbers do not accurately represent organic growth in the EV market. The proportion of BEVs among all newly registered vehicles this year stands at 18.4 percent, up from 13.3 percent in the previous year. However, without the effect of self-registrations, the actual uptake by end consumers would be considerably lower.

Between January and October, there were 102,520 self-registrations of BEVs. This marks a substantial rise from 67,895 during the same period last year and 70,313 the year before, when government environmental bonuses were still in effect. The increase is mainly attributable to manufacturers, who have more than doubled their use of this strategy over the last two years.

The influx of nearly new vehicles onto the used car market has also had a significant impact on pricing. Vehicles that are self-registered are often quickly resold as nearly new or young used cars, frequently with considerable discounts. While this can benefit customers seeking lower-priced EVs, it also exerts downward pressure on residual values across the entire used EV segment.

According to figures from industry analysts, the average residual value of a three-year-old electric vehicle with standard mileage was 48.8 percent of its original list price in October. This is a sharp decrease from 58.1 percent two years earlier. By comparison, petrol vehicles currently retain 63 percent and diesel vehicles 61.3 percent of their initial value over the same period, with their declines occurring at a much slower rate.

The fall in residual values for EVs also affects the cost of leasing, as lower anticipated resale values drive up monthly leasing rates. At the same time, prices for new electric vehicles have come under pressure, with industry experts noting a steady increase in discounting throughout the year.

Sector representatives attribute the subdued consumer demand to factors beyond the purchase price. High charging costs and insufficient charging infrastructure, particularly in residential areas, remain significant barriers to broader adoption. Although there is a growing selection of affordable small and mid-sized BEVs, these obstacles continue to hinder wider acceptance among both private and commercial buyers.

Overall, while headline data may suggest robust growth in the electric vehicle sector, a substantial portion of this is driven by internal industry practices rather than genuine consumer interest. The associated consequences, including falling values for used EVs and a reliance on discounting to stimulate sales, highlight the fragility of the current market trend.