Electric car sales in Germany plummeted by 27.4% last year amid the transition from combustion vehicles to zero-emission models.
According to a statement from the Federal Motor Transport Authority (KBA), 381,000 electric vehicles (EVs) were registered in the country in 2024.
This 27.4% drop follows five years of strong registration growth.
The transformation of the automotive industry depends on customers’ trust in EVs to drive sales.
However, last year’s data shows this trust has yet to materialise, with the market share of electric models dropping from 18.4% in 2023 to 13.5% in 2024.
The reasons for this poor performance include high inflation, which has slowed consumption in the Eurozone’s largest economy, and the withdrawal of public subsidies for “clean” vehicles, which occurred just over a year ago.
The decline in electric vehicle sales was significantly steeper than that of the overall sector, which fell by just 1%. Total registrations rose to 2.8 million.
Notably, traditional internal combustion engine vehicles regained ground, with 992,000 new units registered, marking a 1.4% increase.
The surprise came from hybrid vehicles.This segment achieved an annual increase of 12.7%, now accounting for one in three sales, with 947,398 units registered.
Some analysts believe the market will need to react, with manufacturers potentially being forced to lower the prices of electric vehicles to revive sales.
However, this potential price reduction could impact company profit margins.
Furthermore, from this year onwards, the sales of combustion and electric vehicles will be more interlinked.
Manufacturers will need to align combustion vehicle production with EV output to meet emission reduction targets.
To attract consumers, Social Democratic Chancellor Olaf Scholz, campaigning for the February legislative elections, is advocating for a European bonus to incentivise the purchase of electric cars.
