Global position of the German EV market

Do you think Germany is still the king of the vehicle industry? Are they able to maintain their ruling position, when it comes to the vehicle industry?

Germany, being one of the leaders in the auto industry, found its place in the third position in 2023, after China and the United States recorded half a million new battery electric vehicle (BEV) registrations in a single year.

In Germany, EVs accounted for 18% of all car sales, with BEVs making up a significant portion of the German EV market, which is expected to generate revenues of $63.2 billion by 2024.

In Europe, Germany is one of the leading EV producers and also the second-largest in the world, following China. The key automakers are also contributing to the growth of the EV market in Germany.

Even though Volkswagen is going through its tough phase and whether to be in Germany or not. Still, Volkswagen is in a competitive position. The German-produced EVs are also exported on a substantial portion, around 76%.

As per the expert reports, in 2023, nearly one in five cars sold was electric, with battery electric vehicles (BEVs) accounting for a significant portion of these sales. The market is expected to continue to grow, with revenue projected at $63.2 billion by 2024.

The rising companies are:

1. Volkswagen is dominating the German EV market with its position as the top-selling electric car brand in Germany, with models such as ID.4 and ID.5. The company is ambitious to electrify its fleet and is aiming for a sale of 50% of its sales to be electric by 2030 and nearly 100% by 2040.
2. Mercedes-Benz is also a significant player in the EV market, mainly in plug-in hybrids and BEVs. The company is known for BEV registrations in August 2023, all-electric by 2030, “where conditions allow.”
3. BMW is also a key player in setting up new records for BEV registrations, with the company focusing on expanding its electric lineup.
4. Chinese manufacturers such as MG Roewe, GVM, BYD, and NIO are also significant in the German market, with market share posing a serious threat to local manufacturers.

The companies losing in Germany:

1. Tesla remains a significant player with a relatively slow period in Germany. In August 2023, Tesla’s new registrations were up only 30.5%, year-on-year, slower compared to other brands.
2. Hyundai saw a decline in its market share with fewer BEV registrations compared to previous years.

The new developments and entries:

• The German government policies are implemented in various ways to promote EV adoption, such as subsidies and incentives. However, the cancellation of subsidies in mid-December 2023 introduced uncertainty into the market.
• Volkswagen’s ID and Mercedes-Benz EQ series are the new models that are introduced for making a lot of buzz to drive further growth in the market.
• The charging infrastructure is expanded with heavy investments in building more charging stations to support the growing number of EVs.

Strategic Partnerships

1. Volkswagen and Northvolt, Germany and Swedish partnership to produce batteries for its electric vehicles. The partnership aims for a secured and stable supply of batteries and reduces the dependency on external suppliers.
2. BMW and Solid Power, a company specializing in solid-state batteries with an aim for developing the next generation of batteries offering higher energy density and improving safety.

In summary, the German EV market is vibrant and evolving with key players, with new policies, new entrants, and also partnerships to shape the future landscape. Sustainability, innovation, and infrastructure are crucial for driving the market forward.

Sources:- heise, insideevs, statista, car sales statistics, energy monitor, iea, Automotive New Europe, cleantechnica, best selling cars, vda, euronews