High stocks and low demand bring bargains

German wallbox market sluggish - High stocks and low demand bring bargains

For many users, an electric car needs its own wallbox. However, business with wall charging stations is currently struggling; some dealers and manufacturers are struggling with problems. A good deal for customers: many wallbox offers are available online at a competitive price - with discounts of up to 50 percent.

There are more than 22 million private car parking spaces at single and multi-family homes in Germany. In the future, almost every one of them is likely to be equipped with a wallbox. However, the market in Germany is currently sluggish. According to Bayerischer Rundfunk, business with wall charging stations in the electrical wholesale sector slumped by 70 percent in the first quarter of 2023 compared to the previous year. The figures for the second quarter show a drop of 70 percent. However, the comparative period in both cases is the extremely strong previous year, in which various subsidy programs ensured brisk sales.

"The current weaker demand in Germany is a temporary effect due to the vacuum created by the discontinuation of government incentives here," says Davide Ghione, CEO of wallbox manufacturer Amperfied, assessing the situation. Alexander Wieler from competitor EVBox takes a similar view: "Many customers have taken advantage of the KfW subsidy and in some cases have already equipped themselves with wallboxes in advance of a later car purchase. This artificially created too much demand," explains the Dutch provider's Head of Sales for Germany.

At the time, wholesalers filled their warehouses and manufacturers increased their production capacities out of concern about ongoing supply problems. When the inevitable slump came, some got into difficulties. The Franconian start-up Dezony had to file for insolvency. And the established manufacturer ABL, also from Franconia, is also struggling with problems.

Good situation for customers

For customers, on the other hand, the combination of high stocks and low demand is generally a good situation. Online, many manufacturers and importers are offering wallboxes at rock-bottom prices, advertising discounts of up to 50 percent. However, it is not always immediately clear how good the devices are. This is because the still young market is highly fragmented and very confusing.

In addition to group subsidiaries such as Amperfied (from printing press world market leader Heidelberg), long-established companies such as EVBox and innovative specialists such as Juice Technology, there are many start-ups or pure sales brands that often import no-name devices from the Far East. If you want good quality, you can use the tests carried out by trade journals and automobile clubs as a guide. The ADAC in particular regularly tests various devices for safety and function.

However, if you are looking for a bargain, you should be aware that wallbox technology is constantly changing. Although discounted stock items perform their core task - charging electric cars - well, older devices often do not have the functions that are in demand today. Anyone looking for boxes with Wi-Fi or app connectivity, for example, or who wants to charge their electric car with their own photovoltaic power, will generally have to resort to newer models at a standard price that has not been reduced.

Only 5.3 percent of households have their own wallbox

In general, the wallbox market is likely to mature and consolidate significantly in the coming months and years. Particularly in the fleet customer business, it is not enough to sell inexpensive hardware. Installation, maintenance and repair services are also important, which not all providers will be able to offer. Those who survive the consolidation will find themselves in an interesting market.

According to the Society for Consumer Research (GfK), only 5.3 percent of all households in Germany currently have their own wallbox. Added to this are the charging points that companies such as hotels, retailers and parking garage operators want to offer their customers.

Concentrating on international business, which is not affected by the subsidy bubble, is also an option for the industry. For example, Amperfied has taken the sluggish German business as an opportunity to review its sales strategy and expand its presence in Europe, says Ghione. But Germany also remains a good market. "An improvement is already tangible and noticeable, even if we do not expect the level of 2021, which was artificially achieved through subsidies, to be reached again so quickly. Rather, there will be a normalization, as is imminent for electromobility as a whole."

Independent observers also expect good business in the future. "The segment of potential wallbox buyers is not yet very large, but it is crisis-resistant and strong. The brand still plays a subordinate role for end consumers. This opens up opportunities for manufacturers to position themselves successfully in a market that is still growing," advises Florian Prockl, Consumer Insights expert at GfK.