Trend on the car market: Electric cars are in greater demand

The conditions for mass sales of electric cars are not exactly favorable. In January, the subsidy for purchases was massively reduced. Interested parties have to wait many months for some particularly popular models because the manufacturers can no longer keep up with production. In addition, inexpensive electric cars are still in short supply. Despite these obstacles, their share is increasing: In April, 29,740 electric cars were newly registered in Germany, according to the Federal Motor Transport Authority (KBA).

That was more than 34 percent more than in the same month last year. The share of purely electric vehicles in all new registrations last month was 14.65 percent. At the beginning of the year, demand had temporarily dropped somewhat, which was also due to new registrations being brought forward in December 2022. “Now electric cars are recovering again, growth is gaining momentum,” says Peter Fuss, partner at the consulting firm EY. Nevertheless, the current funding pots are finite. From the coming year, the sums shrank again. For commercial buyers there will no longer be any subsidies from September. “The electric car market must therefore increasingly stand on its own two feet. Experience from other countries shows that state subsidies still play a significant part in the success of e-cars, at least for the time being,” believes Peter Fuss.

Gasoline and diesel cars also increased in sales last month compared to the previous year. According to the KBA, the increase in new registrations for petrol drives was almost 18 percent compared to April 2022. Growth for diesel was less at just under 3 percent. A total of 202,947 passenger cars were registered for the first time in Germany last month. That was 12.6 percent more than in April of the previous year. “We also expect significant growth for the entire second quarter,” said Reinhard Zirpel, President of the Association of International Motor Vehicle Manufacturers. “However, that cannot hide the fact that the records of the pre-Corona years are far away.”


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