It's been more than a year since the German government removed state subsidies for new electric cars to plug holes in the country's economy. Sales are plummeting.
Electric car sales in Germany have collapsed after a year without government support. After the government removed its subsidies for electric cars at the end of 2023, sales fell significantly in 2024.
In fact, a 28 percent drop in electric car sales was recorded, leading to a significant reduction in electric cars' share of the largest car market in Europe.
This is shown by new figures from the German response to the Danish Road Safety Authority, KBA.
The situation stands out compared to countries like the US and China, which experienced growth in sales of electric cars during the same period. And of course Denmark, where electric cars are artificially helped along by no or very little registration tax.
In 2024, 380,609 new electric cars were sold in Germany. A clear decline compared to the previous year. This meant that electric cars only accounted for 13.5 percent of total car sales.
Germany, often seen as a beacon of the automotive industry in Europe, has had a challenging year for electric cars in general, with analysts describing 2024 as “a lost year for electric cars” in the country.
While sales of electric cars declined, hybrid cars performed better. Sales of plug-in hybrids increased by 12.7 percent, reaching 947,398 cars sold.
This corresponds to a share of 33.6 percent of the total car market. Sales of plug-in hybrids also grew. Although more modestly by 9.2 percent, which is the same as 191,905 cars and or a market share of 6.8 percent.
Gasoline cars continued to dominate the market, accounting for 35.2 percent of total sales in 2024.
991,948 new petrol cars were sold, an increase of 1.4 percent compared to the previous year. In contrast, sales of diesel cars fell by 0.7 percent, corresponding to 483,261 cars sold and a share of 17.2 percent.
The primary reason for the decline in electric car sales was the German government's decision to remove subsidies at the end of 2023. At the time, the explanation was that it was to close a gap in the state treasury. But the following month, electric car sales fell by more than 50 percent.
Previously, buyers could receive up to 4,500 euros in subsidies when purchasing an electric car, while car brands received a subsidy of 2,250 euros per car.
According to Transport Minister Volker Wissing, the goal was to allow the market to function without public support. However, figures from 2024 suggest that the continued subsidy has had a significant negative impact on the market.
Here at home, car importers also fear that Danes will lose interest if the state support for electric cars ends. Read more about it here .
Germany's position as Europe's largest car market means that developments here are often used as a benchmark for the rest of the Union, not just car sales across the continent.
With the sharp decline in electric car sales, the development raises questions about whether the German car industry can maintain its leading role in the transition to green transport. BMW is among the brands that have already warned about it.
