Electric car sales are declining

Electric car sales are declining

Recent statements by Volkswagen The desire to reduce the production of electric cars due to falling demand has set off alarm bells over the world Battery-powered car market in Germany. But August went very well with the number of registrations reaching 86,649, equivalent to a 170.7% increase compared to 2022. September 2023However, things changed radically.

Although the overall market has stabilized significantly (-0.1% compared to September 2022, equivalent to 224,502 units), Electric vehicle sales have collapsed as incentives for companies expire.

Incentive effect

More specifically, in September 2023, 31,714 new electric vehicles were registered. This represents a decrease of 28.6% compared to September 2022 and up to 63% compared to August 2023. The electricity market share was 14.1%. Consequently, the cessation of incentives for companies led to a collapse in sales. In fact, in the previous months, given this deadline, companies expected to stop contributions, and make multiple purchases.

In fact, according to figures from the KBA Transport Authority, the majority of electric vehicle registrations in August were for commercial customers. This shows that sales of electric car models in Germany were entirely linked to the company’s channel and the availability of incentives.

Obviously, I am The coming months It will be necessary to understand it What will be the future trend of the electricity market In Germany. The September signal is certainly not positive in light of the last quarter of 2023. It should be anyway Close in growth Compared to 2022, for the German electricity market, thanks to the excellent performance in the last few months but the future looks a bit uncertain.

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From January 1, 2024, there will be a new readjustment of incentives, so people could be pushed to bring forward this deadline, leading to increased EV sales towards the end of the year.

We will see what actually happens, but as mentioned earlier, the last three months of the year will allow us to better understand the direction of the German electricity market. However, it seems clear that without sufficient contributions, the German battery car market does not seem to be able to stand on its feet.

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