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[BUSINESS] · Germany · 17 sources

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Germany automotive market shifts toward electric vehicles

Germany is experiencing a significant shift in its automotive market, with electric vehicles (EVs) gaining substantial ground. According to data from the Kraftfahrt-Bundesamt (KBA), nearly one in three new cars registered in July was an electric vehicle. This growth is being driven by both new and used car markets. HUK Coburg reports that 12 percent of private vehicle changes in the second quarter involved switching from an internal combustion engine to a pure electric vehicle, a record high. The used EV market is also seeing momentum, with a 7.9 percent switch rate.

Rising fuel prices are a primary driver for this transition. Approximately 24 percent of drivers surveyed by HUK Coburg indicated that increased gasoline and diesel costs prompted them to consider or accelerate their plans to purchase an EV. This trend is particularly pronounced among high-mileage drivers, where the switch rate reaches 14.7 percent.

While traditional German manufacturers like Volkswagen, Mercedes-Benz, and BMW maintain market leadership, they face increasing competition from international brands. Chinese manufacturer BYD saw a massive 365.4 percent increase in July registrations. Meanwhile, the German electrical and digital industry reported a 9.5 percent increase in orders during the first half of the year, though concerns regarding material shortages due to geopolitical tensions in the Persian Gulf remain.

Entities

BMW · BYD · Germany · HUK Coburg · Kraftfahrt-Bundesamt · Mercedes-Benz · Schwarz Group · Volkswagen · ZVEI · Škoda

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