Dataforce Study: Germany Falls Behind in E-Mobility

United Kingdom Last in Subsidy Practices

Dataforce conducted a study comparing the electric car subsidy policies in Germany, France, Italy, Spain, and the United Kingdom, which together form the five strongest economies in Europe. The findings are clear: While Germany is abolishing the environmental bonus, France, Italy, and Spain continue to promote the rise of electromobility, whereas the “Plug-In Car Grant” for electric cars was already abolished in the United Kingdom in 2022. Nevertheless, the enthusiasm for electric cars on the island remains undiminished. This is partly due to tax incentives for electric cars and a strong commercial market for electromobility.

Financing through Tax Penalty for Combustion Engines

France pays a purchase premium of 5,000 euros, which, for applications from December 15, 2023, is tied to CO₂-low vehicle production but otherwise continues. In Italy, the state contribution is 3,000 euros in 2023 and 2024. In Spain, the purchase premium of 4,500 euros runs at least until July 2024. Additionally, a tax credit of up to 3,000 euros is also offered. The funding is also financed by having buyers who choose cars with particularly high emissions pay a so-called ecological penalty upon first registration.

E-Car Purchase Premiums for Private Individuals (2023 / 2024)

• Germany: 4,500 / 0 euros
• France: 5,000 / 5,000 euros
• Italy: 3,000 / 3,000 euros
• Spain: 4,500 / 4,500 euros
• Great Britain: 0 / 0 euros

Without the Purchase Premium, Private E-Car Demand Shrinks

The consequences of the lack of support in Great Britain and the reduced and now completely abolished support in Germany can be seen in the development of private new registration numbers. Data for the first eleven months of 2023 are already available, and Dataforce has forecast December for a full year comparison.

In the three countries where the support continued unchanged in 2023, private e-car registrations have risen significantly. In Germany, where the support was cut, private individuals will register 5% fewer electric cars this year than in 2022. And in Great Britain, the private e-car market is shrinking by even 17%.

2024: Fewer Electric Cars in Germany for the First Time

Dataforce predicts a 4% shrinkage of the private e-car market in Germany for 2024. With continued support, the registration numbers would have grown by a similar amount. Thus, in 2024, it will be the first time in Germany that fewer electric cars are registered overall – including commercial registrations – than in the previous year. The self-proclaimed “leading market for electromobility” is losing ground not only against China but also across Europe, as e-car volumes continue to increase in all other countries.

The fact that the balance sheet does not turn out even worse is mainly due to the vehicle manufacturers. For 2024, Dataforce has recorded 75 new e-car models and 24 facelifts in the Vehicle Lifecycle Calendar. Among these are vehicles such as the Citroen e-C3 and the Renault 5, which are offered below a base price limit of 25,000 euros. Dataforce also expects more discounts and reduced leasing rates for existing models. Additionally, the charging infrastructure is improving slowly but steadily. While electricity prices at charging stations are slightly decreasing, the CO₂-tax is making gasoline and diesel more expensive.

What This Means

The country comparison makes it clear that government support has a significant impact on the ramp-up of electromobility. The end of the environmental bonus will undoubtedly slow this ramp-up in Germany, making it even more difficult to meet climate targets than it already is. In addition, the elimination of the premium particularly affects people interested in affordable cars. Here, the premium makes up a larger proportion of the purchase price, and the cost difference to combustion engines is still significantly greater than in medium and large vehicles.

Translated automatically from German.