Will the e-car boom end because of expensive electricity and falling subsidies?

The e-car faces major challenges. The operating cost advantage over combustion engines is decreasing, and the high selling price premium continues to increase. How will buyers react?

Marking at a charging station for e-cars: If electricity prices continue to rise, more and more parking spaces at charging points might remain free.

Christian Ohde / Imago

To be number one in Europe’s automotive country electrified vehicles in the last few quarters, they have really caught up with cars with petrol and diesel engines. High government subsidies through the so-called environmental bonus drove sales in Germany. According to the Federal Motor Transport Authority (KBA), in 2021 sales of purely electric cars rose by 83 percent and those of hybrid vehicles by 43 percent. They thus achieved a considerable market share in sales of almost 14 and almost 29 percent. The trend towards electric cars continued in the first half of this year, although the momentum has slowed down significantly and customers are now taking a much more critical view of hybrid vehicles. This is threatened in the coming year E-Auto-Boom but an abrupt end.

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