Germany Shows Dependence on Electric Car Subsidies: 100,000 Vehicles Collecting Dust
Electric car sales in Germany are struggling, with a significant drop in demand following the end of purchase subsidies. While 184,125 electric vehicles were registered in the first half of 2024, this represents a 16% decline compared to the previous year. Additionally, around 100,000 electric cars remain unsold, stuck in ports or warehouses due to insufficient demand.
Dealerships are facing financial losses, with 80% reporting negative returns on electric car sales. Many are reluctant to accept electric vehicles as trade-ins for new purchases. The situation highlights a critical moment for the electric vehicle market, as manufacturers grapple with high prices and rapid technological advancements that leave older models behind.
The decline in sales is not isolated to Germany; it mirrors trends in Sweden, where subsidies are minimal. As the market adjusts, manufacturers like Audi and Volkswagen are reconsidering their electric vehicle strategies amid these challenges.