The German car market saw its sales increase significantly in January, a figure that however has “little importance”, compared to a very weak month in January 2023, while sales of electric vehicles plummeted.
A total of 213,553 cars were registered in Germany, representing a year-on-year increase of 19.1%, the Federal Automobile Agency (KBA) reported in a press release on Monday.
“This increase is mainly explained by an extremely weak month of January 2023, when sales of electric registrations plummeted due to advance sales,” commented the Federation of German International Automobile Manufacturers (VDIK).
An effect linked to the cut in electricity subsidies
At that time, drivers had integrated the reduction planned for January 1, 2023 in state subsidies for electric and hybrid cars and had rushed to purchase vehicles before this cut.
The figures for January 2024 therefore have “little meaning”, explained VDIK President Reinhard Zirpel.
The latter expects around 2.85 million cars to be sold this year, a level much lower than before the pandemic, when 3.6 million cars were sold in 2019.
20% below pre-crisis level
January registrations are still 20% below the pre-crisis level.
Especially since electric cars experienced especially weak growth in January. Its sales, at 22,474 units, are at their second lowest level in almost two years.
This is explained by the sudden elimination of the environmental bonus for individuals in December. Olaf Scholz’s government had to urgently stop this spending due to a decision of the Constitutional Court that deprived the budget of several billion euros.
This has caused “great uncertainty among consumers and will leave a clear mark this year,” according to Reinhard Zirpel.
18.4% electric cars in 2023
Electric cars only represented 10% of registrations in January, compared to the 18.4% market share in 2023 as a whole.
It is a “disaster,” according to Constantin Gall, an expert at the firm EY: “customer confidence in the rise of electromobility has been shaken.”
In the absence of public subsidies, it expects a drop in new electric registrations in the coming months because prices remain too high.
“Many new car buyers will either choose a combustion engine again, or postpone their purchase decision at this time and continue using their current vehicle rather than opting for an electric car,” he says.
Source: BFM TV
