Approximately one-third of all electric vehicles registered in the EU will be in Germany by 2023.
The electric vehicle market in Germany currently appears to be stationary. Notably, just a handful of European nations surpassed Germany in the previous year, partly due to government subsidies. Generally, a distinct north-south gradient is evident in registration data.
Last year, approximately 524,200 electric vehicles were newly registered in Germany, accounting for about 33.3% of the total 1.55 million electric vehicles registered across the EU, as reported by the Federal Statistical Office in Wiesbaden. Germany's share of electric vehicle registrations stood at 18.4% in 2022, slightly increased from the 17.8% in 2021. However, this trend has not persisted in the current year; as per the Federal Motor Transport Authority, only 12.7% of cars newly registered between January and August boasted a completely electric powertrain.
Germany thus outpaced the EU's 14.6% average in 2023, but lagged significantly behind Sweden (38.6%), Denmark (36.1%), and Finland (33.8%). The highest shares are observed in the non-EU nations of Norway and Iceland: Norway recorded nearly 80% of its newly registered cars as electric, while Iceland surpassed the 50% mark. The explanatory factors include the availability of charging infrastructure, tax incentives, and exemptions from tolls or parking charges, according to the statistics office. A clear north-south gradient is evident in Europe, with the fewest new electric cars registered in Croatia (2.6%) and Slovakia (2.9%).
Registration numbers plummeted post-subsidy withdrawal
Germany discontinued subsidies for electric vehicles – up to €4,500 for the purchase of new vehicles – at the end of 2023. Since then, new electric vehicle registrations have plummeted: for instance, in August, there was a 68.8% decline compared to the previous year.
The German government now aims to stimulate electric vehicle sales with tax benefits for company cars. Companies will be entitled to quicker depreciation of electrically operated company cars and lower taxes for costlier electric vehicles. Additionally, the automotive industry demands a more rapid expansion of charging infrastructure and cheaper electricity prices.
Germany ranked second in share of new car sales
The German government aims to have at least 15 million fully electric passenger cars on German roads by 2030. At the start of this year, there were approximately 1.4 million electric vehicles on German roads, according to the Federal Motor Transport Authority.
In total, around 49.1 million passenger vehicles were registered in Germany. Regardless of the power source, Germany has a relatively high share of nearly new vehicles. In Germany, 14.8% of the approximately 49.1 million passenger vehicles are less than two years old. Only Luxembourg boasts a higher quota with 19%. A substantial number of older cars can be found in Romania, Finland, and Estonia, where one-third of the cars are more than 20 years old.
Despite the government's aim to boost electric mobility in Germany, the withdrawal of subsidies has led to a significant decline in new electric vehicle registrations. As a result, countries like Sweden, Denmark, and Finland have surpassed Germany in electric mobility adoption, showcasing the impact of government incentives.
