German car market recovers slightly
The German car market has slightly recovered in the first half of the year. From January to June, 1.47 million new cars were registered, representing a 5.4% increase compared to the previous year's period, as the Federal Motor Transport Authority announced on a Wednesday. However, the decline in registrations for electric cars is hindering the overall market: Registrations dropped by 16.4% in the first six months. The reason is the withdrawal of government subsidies at the end of last year. In addition, smaller, affordable electric models are in short supply. According to experts, price-conscious customers, who are willing to contribute to climate protection, have been holding back in recent years. The mass market needs to catch up, but is not doing so yet.
"The discussion about the withdrawal of the combustion engine ban in 2035 is promoting this development further and hindering the ramp-up of electromobility," explained the President of the Automobile Importers Association VDIK, Michael Lohscheller. The goal of the German government to have 15 million electric cars by 2030 is moving further away.
In comparison to the year before the Corona crisis in 2019, the car market in Germany is 20% lower in the annual course of 2022, explained Constantin Gall, automotive expert at the consulting firm EY. "It doesn't look like the gap to the pre-crisis level can be closed medium-term." A weak economy and the purchasing power loss of consumers due to inflation, as well as uncertainty about electric cars, are obstructing this.
In the German Car market, this half year saw a 5.4% increase in new car registrations compared to the same period last year. Despite this, the decline in electric car registrations, resulting from government subsidy withdrawals and limited supply of affordable models, has impeded the market's overall growth.
