Germany is five years behind electric car targets as sales slump and carmakers postpone targets
Did you know that Germany’s auto industry is struggling with high investment costs and low demand for electric cars?
The shift to electric mobility is shaking up longstanding industry networks and production practices centred on combustion engines. Challenges are exacerbated by German carmakers’ late decision to significantly ramp up their investments in EVs and battery technology, where they face fierce international competition (mainly from Chinese electric vehicle manufacturers) and lag behind in key fields.
Energy reporting website ‘Clean Energy Wire’ recently reported that there is a continued slump in new electric vehicle (EV) registrations in Germany and this could set the country’s electromobility growth target back at least five years, according to industry expert Ferdinand Dudenhöffer, reported Die Welt.
Meanwhile, Dudenhöffer sees both the abrupt end to EV purchase premiums and the debate around a ban on combustion engines as triggers for the current sales slump, making the target of having 15 million EVs on the road by 2030 seem increasingly out of reach.
“Germany is losing more than five years in the ramp-up of electromobility,” he told Die Welt. The high share of EV sales seen in 2022 and 2023 was not expected again in Germany until 2028, according to Dudenhöffer’s calculations.
Interestingly, the dual head of German carmakers Porsche and Volkswagen (VW), Oliver Blume, said he remains committed to the switch to electric mobility as both companies postponed EV growth targets.
“The technology is far superior to the combustion engine,” Blume told Die Welt in an interview. Business daily Handeslbatt had reported VW would postpone the start of production of its Trinity electric model to the end of 2032 (original launch was planned for 2026), while luxury carmaker Porsche also recently postponed its target of achieving an 80 percent share of EVs by 2030.
Delivering new EVs has always depended on demand and market developments, Blume said. Charging infrastructure, energy prices and tax incentives also played an important role in scaling up electromobility. However, “technologically, and in terms of climate protection, the course is clearly moving in the direction of e-mobility,” he added.
Germany’s car industry is struggling with high investment costs and low demand for electric cars. The automotive industry is a central pillar of the German economy and directly employs hundreds of thousands of people in the country.
Meanwhile, extending tariffs on Chinese made electric cars will not solve the problem in the long-term.
The shift to electric mobility is shaking up longstanding industry networks and production practices centred on combustion engines. This is exacerbated by German carmakers’ late decision to significantly ramp up their investments in EVs and battery technology, where they face fierce international competition and lag behind in key fields.
