Record Production of Electric Vehicles in Germany Amidst Declining Sales: Expert Warns of Competitive Struggle
The German automotive industry is witnessing an unprecedented surge in electric vehicle (EV) production, reaching record levels. However, this growth is contrasted by a significant drop in domestic sales, prompting concerns about the competitive landscape.
Recent reports indicate that while the production of electric vehicles has soared, the demand from consumers has not kept pace. This disparity is largely attributed to the cessation of government subsidies for electric vehicle purchases, which were discontinued in 2023, leading to a notable decline in sales figures.
According to the German Automotive Industry Association (VDA), production figures for October revealed that Germany manufactured 143,200 electric vehicles, marking a 38% increase compared to the same month last year. This surge has resulted in electric vehicles comprising 38% of the total passenger car production, a record high. Major manufacturers, including Volkswagen, have significantly ramped up their production capabilities for electric models in 2024.
Despite this rise in production, the sales of electric vehicles have continued to decline. Recent statistics from the Federal Motor Transport Authority (KBA) show that in November 2024, approximately 35,200 battery electric vehicles (BEVs) were newly registered, which represents a nearly 22% decrease compared to November of the previous year. The share of electric vehicles among all new registrations was around 14%. Meanwhile, the total number of new car registrations remained stagnant, with 244,544 passenger cars registered, similar to the figures from the same month last year.
The VDA maintains its forecast for the overall automotive market, projecting approximately 2.8 million new cars for 2024, consistent with the previous year's results. However, this continued stagnation poses challenges for the industry as it struggles to regain the momentum seen prior to the pandemic.
When comparing current market conditions to those before the crisis, the overall new car market remains approximately 22% lower than the volumes recorded from January to November 2019. Furthermore, the first eleven months of the year saw a 26% decrease in new registrations for electric vehicles, while plug-in hybrid sales experienced a 9% increase.
On a positive note, the export of vehicles produced in Germany has shown signs of growth. In 2024, exports increased by 3%, totaling three million vehicles, although this figure is still 9% below pre-crisis levels.
These statistics reflect a mixed outlook for the German automotive sector, indicating that while production remains robust, the domestic market is facing considerable challenges. Experts assert the need for the industry to enhance efficiency to maintain international competitiveness in the face of rising global competition, particularly from countries like the United States and China, which are implementing extensive investment and subsidy programs.
In conclusion, the German automotive industry finds itself at a crossroads, where record production levels of electric vehicles must be matched by a corresponding increase in consumer demand. As competition intensifies, stakeholders are urged to adapt and innovate to secure their position in an increasingly complex market landscape.
