Automotive industry players and stakeholders are growing increasingly worried about the rising electric vehicle prices in Germany. A recent analysis by the Center of Automotive Management (CAM) has revealed that EV prices in the European nation have been on an upward trend alongside a rise in the number of available EV models, leaving many experts worried about the future of Germany’s electric vehicle industry.
CAM conducted an in-depth analysis of new EV registrations in Germany that covered segments, EV models, and purchase prices. The analysis also covered China’s electric vehicle industry. Researchers found that the number of electric vehicle models in Germany increased from 105 in 2023 to 134 in 2024. Sports utility vehicles (SUVs) made up 56.7% of the available EV models while the share of small and mini electric vehicle models reduced over the study period.
According to the researchers, the current crop of EV models available to German buyers may make it harder for the country to boost electric mobility. With smaller EV variants typically costing less than larger models, this likely contributed to the general rise in average EV prices in Germany. The CAM analysis revealed that prices in the mid-size SUV segment rose by $4,202, bringing electric vehicle costs to $59,901 (pre-subsidy). As a result, electric cars were 7.5% more costly in the first 3 quarters of 2024 compared to 2023.
In addition to the increase in larger electric vehicles, the rise in EV prices could also be due to the fact that Germany discontinued its environmental bonus in late 2023. This bonus was particularly intended to subsidize cheaper EVs, and its discontinuation made it difficult for less affluent buyers to purchase an EV in 2024. Premium electric cars weren’t as affected by the loss of the environmental bonus.
Germany’s automotive sector has also seen its share of small EVs fall. The Center of Automotive Management notes that Germany has just 7 small and mini EV models, down from 12 models in 2023, as automakers choose to discontinue small EV models like the Smart For Two and the Renault Zoe.
German consumers now have access to fewer small and mini electric cars. The remaining vehicle models available to the German market are also more expensive. According to the CAM’s calculations, 15 of the most registered electric vehicle models in the country had a 10.6% price increase, while the top models in the German EV market were up to 14.5% more expensive.
CAM study director Stefan Bratzel notes that even though Germany’s EV industry is developing well in terms of charging and range performance, the lack of competitive prices compared to fossil fuel-powered cars is having a negative impact on the country’s electrification efforts.
Future increases in EV prices will impact the next phase of electric mobility even more as it requires the support of regular consumers with limited budgets, rather than affluent and tech-savvy early adopters, Bratzel says.
Enterprises like Nikola Corporation (NASDAQ: NKLA) that wish to expand into the EU market may have to think carefully about the best marketing strategy to implement in order to win buyers who may not be too eager to pull out their checkbooks.
About GreenCarStocks
GreenCarStocks (“GCS”) is a specialized communications platform with a focus on electric vehicles (“EVs”) and the green energy sector. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, GCS is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, GCS brings its clients unparalleled recognition and brand awareness. GCS is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from GreenCarStocks, text “Green” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.GreenCarStocks.com
Please see full terms of use and disclaimers on the GreenCarStocks website applicable to all content provided by GCS, wherever published or re-published: https://www.GreenCarStocks.com/Disclaimer
GreenCarStocks
Los Angeles, CA
www.GreenCarStocks.com
310.299.1717 Office
[email protected]
GreenCarStocks is powered by IBN
