China dominates global EV production, but most of its cars are sold domestically. By contrast, 76% of German EVs are sold abroad. The US holds the spot for the world’s third-largest EV maker. And Germany, the home of key automakers such as Volkswagen, BMW, and Mercedes-Benz, leads Europe Contact online >>
China dominates global EV production, but most of its cars are sold domestically. By contrast, 76% of German EVs are sold abroad. The US holds the spot for the world’s third-largest EV maker. And Germany, the home of key automakers such as Volkswagen, BMW, and Mercedes-Benz, leads Europe with more EVs produced than second-placed Spain (256,000) and France (225,000) combined.
DW reported in December that “the Federal Motor Transport Authority calculates that around 10 million EVs will be registered in Germany by January 1, 2030. Depending on the size of the current vehicle inventory, this would correspond to an EV share of 20-25%.”
However, Germany’s 2024 EV manufacturing outlook isn’t all smooth sailing. The German government’s EV subsidy program, which was supposed to run until the end of 2024, was suddenly shelved in December after the 2024 budget was revised. Germany’s constitutional court created a €60 billion ($65.36 billion) hole in the country’s state budget, forcing the government to scrap several programs.
The government scheme offered up to €6,750, which was funded by the state and carmakers, depending on the value of the EV. But as of January 1, 2024, Germany’s federal subsidy for BEVs with a net list price of up to €45,000 is €3,000. Manufacturers must also contribute €1,500, for a total subsidy of €4,500. However, vehicles with a net list price of more than €45,000 are no longer eligible for funding.
German automakers face software development and supply chain complexities, putting them behind Tesla and Chinese OEMs with more advanced EV technologies and efficient supply chains. Plus, German automakers often have to collaborate with American and East Asian companies to meet their battery needs, leading to dependency issues and a slower pace of catching up in battery technology development.
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Michelle Lewis is a writer and editor on Electrek and an editor on DroneDJ, 9to5Mac, and 9to5Google. She lives in White River Junction, Vermont. She has previously worked for Fast Company, the Guardian, News Deeply, Time, and others. Message Michelle on Twitter or at michelle@9to5mac . Check out her personal blog.
As one of the leading industry sectors in Germany, the automotive industry achieved a revenue of €426 billion in 2018, accounting for approximately 5% of the German GDP. Due to its high level of employment and significant contribution to value creation, it holds a special position in social, political, and economic dimensions. [1]
Today, electromobility represents one of the greatest challenges for this industry. The global development is characterized by the rapidly growing electric vehicle (EV) fleet. With 6.6 million vehicles sold in 2021, the number of sales doubled compared to 2020. Half of these sales took place in China, totaling 3.3 million vehicles, of which 2.7 million were battery-electric vehicles (BEVs). Europe accounted for approximately 35% of global EV registrations, while the United States accounted for 10%. [2]
Both national and international strategies have played a significant role in this development. The “combustion engine ban” starting in 2035, which was decided on the EU level this year, as well as current EV targets and funding guidelines in Germany, provide a reason to supplement former FfE articles (link under "more information") with the latest developments.
The federal government has set a target to reach a stock of 15 million fully electric passenger cars in Germany by 2030. In the scenarios compared in Figure 2, the EV stock in 2030 is also in this range. Given the development of electromobility in recent years, it gives the impression that the government’s goal is realistic: In 2022, there were approximately 600,000 BEVs and 2.3 million plug-in hybrids (PHEVs) registered in Germany, with the total number of BEVs registered in Germany doubling each year compared to the previous year in both 2021 and 2022 [17].
The contents presented were developed in the unIT-e² project. The research project is funded by the German Federal Ministry of Economics and Climate Protection (BMWK) (funding code: 01MV21UN11 (FfE e.V.)). The project executing organization of the three-year joint project is the German Aerospace Center (DLR).
[1] Mönning, Anke: IAB Discussion Paper 8|2019 – Electromobility 2035 – Economic and labour market effects through the electrification of powertrains in passenger cars. Nuremberg: Institute for Employment Research (IAB) of the Federal Employment Agency (BA), 2019.
[3] Regierungsprogramm Elektromobilität. Berlin: Bundesministerium für Wirtschaft und Technologie, Bundesministerium für Verkehr, Bau- und Stadtentwicklung, Bundesministerium für Umwelt, Naturschutz und Reaktorsicherheit, Bundesministerium für Bildung und Forschung, 2011
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