Official data showed on Thursday (4/4) that new car sales in Germany fell in March. This was caused by a drop in demand for electric vehicles following the removal of government incentives.
A total of 263,844 new cars were launched in Europe’s largest economy last month. This is said by the federal transport authority KBA. This was down 6.2% from the previous year.
The decline was partly due to fewer working days compared to March 2023. But analysts said new orders were also hit by the ongoing slump in the battery electric vehicle (BEV) market, following the government withdrew incentives at the end of last year.
According to KBA, BEV sales plunged nearly 29% in March. “This political decision has created huge uncertainty in the market,” said EY analyst Constantin Gall.
“Demand for electric cars is currently very weak, even though many manufacturers are providing high discounts to compensate for the cancellation of environmental bonuses,” he said. Fully electric vehicles accounted for just 11.9% of all car registrations in March compared with 15.7% a year ago.
Despite the slowdown, Transport Minister Volker Wissing on Thursday said the government still aims to see at least 15 million electric cars on German roads by 2030.
“Creating markets through subsidies is not a long-lasting solution,” Wissing told public broadcaster ZDF. He added that car manufacturers must also provide attractive price offers. (AFP/Z-2)
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