Drivin' Electric: Electric Vehicles Take a Giant Leap in Germany's Car Market
Nearly a fifth of new cars sold in May were powered by electricity.
In the ever-evolving world of automobiles, Germany's car market is showing a notable shift as more car buyers are ditching their traditional petrol and diesel vehicles in favor of electric ones. May saw a record-breaking surge in electrical automobile registrations, with around one out of every five new cars purchased being electric! Let's dive into the facts, figures, and the reasons behind this revolution.
The sales figures released by the Federal Motor Transport Authority (KBA) reveal that the German car market took a minuscule yet significant step forward in May, with a 1.2% year-on-year increase in new car registrations (239,297 vehicles). Although this means a decrease of 2.4% in the first five months compared to last year, it's a baby step towards recovery from the economic downturn caused by the coronavirus pandemic.
Now, you might think that's not much to celebrate, but the real action goes down in the world of electric vehicles. While traditional fuel options, such as petrol and diesel, saw a substantial drop in demand (a 24% and 22% decrease respectively), alternative drives, like electric vehicles (EVs), experienced a tremendous 18% increase in demand! The number of purely battery-electric vehicles (BEVs) soared by an impressive 45% last month, with 43,060 new cars finding homes.
It's important to note that these impressive growth rates are somewhat skewed in part because last year was so poor. However, car manufacturers have made strategic efforts to narrow the price gap between traditional and electric vehicles by offering competitive financing, leasing options, and attractive price tags. Tax incentives for commercial registrations have also played a part in the rise of the electric vehicle segment.
Sadly for Tesla enthusiasts, the popular electric car maker did not benefit from the boom in May. They saw a significant decrease in sales – more than a third – with only 1,210 units finding new homes in Germany. The Chinese automaker BYD surpassed Tesla with a whopping 1,857 units sold last month. Tesla's sales dropped significantly in many European countries, except for Norway, where they saw a substantial increase.
Champion of the German car market, Volkswagen, managed to eke out a 5% increase in May, with 50,048 vehicles sold. BMW and Mercedes-Benz also reported around a 10% increase in sales, while Audi saw a slight drop. Opel took a harder hit with a 22% decrease in sales.
On the production side, things are looking up. According to the Association of the German Automotive Industry (VDA), a staggering 363,600 passenger cars were produced in Germany last month – that's an 18% increase compared to May 2020! Overall, 1.8 million cars have been produced in the first five months, an increase of 4% compared to the same period last year.
So, what does this mean for the future of the automotive industry? Well, the electric revolution is just getting started, and governments, manufacturers, and consumers alike are jumping on board. With positive trends, government incentives, and a growing interest in reducing carbon emissions, we can expect the demand for electric vehicles to continue growing, eventually transforming the German car market – and the world – in the coming years.
References:1. ntv.de2. EY3. DJ
In this rapidly changing automotive landscape, the growth of vocational training programs in the industry could prove crucial as professionals adapt to the increasing demand for electric vehicle technology. The finance sector, especially in offering competitive financing and leasing options for electric vehicles, plays a significant role in bridging the price gap between traditional and electric vehicles. With governments providing tax incentives for commercial registrations, the tide seems to be turning in favor of electric vehicles, potentially leading to a significant shift in Germany's community policy regarding transportation.
