Chinese electric vehicle (EV) manufacturers are making a significant impact on the European market, and Germany is no exception.
“At present, they account for around 10% of the BEV market,” states Stefan Di Bitonto, Deputy Director of Mechanical & Electronic Technologies at Germany Trade & Invest, in dialogue with Mobility Portal Europe.
Their presence is growing rapidly, compelling local automakers to adapt to an increasingly globalised competitive environment.
According to the expert, strategic measures are already being taken to ensure they do not fall behind.
“German manufacturers are investing heavily in EV production, enhancing battery technology, and focusing on cost reductions and improvements in vehicle features,” he notes.
As an example, he highlights that domestic producers are increasing EV manufacturing to meet shifting demand.
And that is not all.
“Germany’s robust automotive infrastructure, skilled workforce, and government support for green technologies continue to make the country an attractive market for both domestic and foreign investors,” affirms Di Bitonto.
This momentum is further bolstered by European policy.
The European Union’s commitment to phasing out internal combustion engine (ICE) vehicles by 2035 provides long-term certainty to investors in zero-emission technologies.
According to Di Bitonto, such regulations create a favourable environment for German automakers to continue advancing their transition to electromobility.
“Regulatory support, such as the phase-out of ICEs, provides stability for investments,” the expert remarks.
However, several stakeholders have expressed concerns and called for delays to the EU’s CO2 reduction targets for cars and vans, set for 2025.
“Nations with strong automotive industries emphasise the need for more robust infrastructure and a market prepared for EVs,” explains the expert.
Nonetheless, the European Commission has reaffirmed its commitment to maintaining these goals, emphasising their importance for achieving the bloc’s climate neutrality by 2050.
“A formal review of the regulation’s effectiveness is scheduled for 2026, which could offer opportunities for adjustments,” he adds.
The German eMobility outlook for 2024
Despite substantial investments in the electric vehicle sector, this year’s decline in sales has raised concerns about the industry’s immediate future.
For instance, the electoral context influences the direction of public policies that could either accelerate or hinder the transition to electromobility.
“The German government, facing fiscal constraints and debates over green policies, has reduced subsidies, impacting the affordability of EVs,” says Di Bitonto.
Nevertheless, the long-term outlook remains positive, with projected annual growth of 14% in market value, potentially driving the sector beyond 100 billion euros by 2028, according to the specialist.
This growth will be driven by several factors.
Among these is the expansion of charging infrastructure, which will facilitate the adoption of electric vehicles.
Additionally, the sector may benefit from consumer incentives, albeit more limited compared to previous years.
The political context could have a significant impact on the trajectory of investments and green initiatives.
“Any policy changes arising from the elections scheduled for 23 February 2025 could either accelerate or further complicate the transition,” he notes.
And he emphasises: “While the overall trajectory of the German EV market remains positive, economic and political developments will be decisive in determining the pace of growth in the short term.”
In this context, the European Union’s potential imposition of tariffs on Chinese vehicles remains a topic of debate.
Many German manufacturers, such as Volkswagen, fear that this measure could provoke retaliatory actions detrimental to their own interests in the Chinese market.
According to a federal government spokesperson, “Germany has consistently emphasised the importance of safeguarding free and fair competition while avoiding the creation of new trade barriers in the long term.”
