The August collapse of the German automobile industry market occurred.
The German automotive market took a dive in August compared to an impressive showing in the same period last year. There were approximately 197,000 new vehicles registered last month, representing a significant decrease of around 28% compared to the previous year.
Electric vehicles experienced a significant drop, with only 27,000 new registrations, a staggering 69% less than the numbers from the previous year. This notable decrease can be attributed to the withdrawal of government subsidies for company cars starting from September last year. This led to a surge in electric vehicle purchases, which in turn boosted overall registrations by more than a third.
However, the market is currently facing reduced demand. The German automotive industry is growing increasingly concerned about the current economic situation and future outlook. The Ifo business climate index for the sector fell by nearly six points to -24.7 in August. As Ifo industry expert Anita Woelfl put it, "The sentiment within the automotive industry is sinking."
Despite the dip in August, some car manufacturers are still optimistic about the rest of the year. The German automotive market is expected to show minor improvements in September.
Despite the decline in August, the overall prediction for electric vehicle registrations in 2023 remains promising, with a projected increase due to improving infrastructure and potential government incentives.
