Electric cars on the decline: Why Germany is lagging behind!

Electric cars on the decline: Why Germany is lagging behind!

In 2023, the global electric vehicle (EV) market recorded significant growth: with 17.4 million newly registered electric cars, the number increased by 17% compared to the previous year, as Econews reported. This development is reflected in the growing global population of electric vehicles, estimated at around 55.8 million at the end of 2024, more than half of them in China.

The Chinese market leads with over 11 million new registrations, followed by the USA, which has around 6.4 million electric cars, and Germany, where only 572,500 electric cars were newly registered in 2023. This decline is in stark contrast to the goal of seeing a total of 15 million electric cars on German roads by 2030. The total number of electric cars in Germany is currently around 2,619,000.

Challenges and setbacks in Germany

The number of new registrations in Germany fell by 18% in 2024 compared to the previous year, which is primarily attributed to the expiry of the German environmental bonus for electric vehicles. In this context, Norway and Denmark show a remarkable development: in Norway, over 90% of all new registrations were for fully electric or plug-in hybrids, while Denmark is astonishing with a growth rate of 46%.

In contrast, the transition to electromobility in Germany has stagnated since the end of the environmental bonus, which highlights the challenges for domestic automobile manufacturers, especially established brands such as VW, BMW and Mercedes. Despite high sales success at international level - VW has sold over 4.3 million electric cars - the German industry remains under pressure.

Global trends and market changes

Overall, sales of electric cars have increased remarkably worldwide. The EU recorded around 2.4 million new registrations in 2024, behind China, which recorded 11.3 million new registrations, and ahead of the USA with 1.6 million new registrations. In international comparison, Chinese manufacturers now cover the entire range of vehicle segments, and eight out of ten of the leading vehicle models are of Chinese origin.

The emergence of new technologies has also influenced the battery economy. Energycomment states that with over 700 gigawatt hours of battery power installed in electric cars in 2023, an increase to up to 3,000 gigawatt hours is forecast by 2030. China dominates battery production, with CATL and BYD as leading manufacturers, while innovative technologies such as solid-state batteries look promising.

Future outlook for electromobility

At a global level, it is estimated that by 2025 electric car sales could increase by 30% and the number of vehicles sold would then reach 22.3 million. In particular, it is expected that plug-in hybrids (PHEVs) could account for 39% of EVs. The growth can be observed primarily in China, where electric cars accounted for more than 50% of new registrations for the first time in August 2024.

However, with only around 4% of the global passenger car fleet currently electrified, there remains a significant path to further decarbonise the transport sector. Electric cars are more environmentally friendly to operate, especially if the electricity used comes from renewable energy sources. The challenge, however, is to compensate for the high emissions caused during production with the emissions saved during operation. The path to a complete transition to electromobility remains as challenging as it is promising.