ermany’s electric vehicle (EV) market experienced a dramatic downturn in 2024, with sales of battery-electric vehicles (BEVs) plummeting by 27.4% to 380,609 units. This decline has been attributed to the removal of government subsidies, which had previously played a significant role in stimulating demand for EVs in the country. As a result, the EV market share in Germany fell to 13.5%, down from 18.4% in the previous year.
The government’s decision to end EV subsidies in 2023 has left many potential buyers uncertain, with high prices, limited driving ranges, and an underdeveloped charging infrastructure contributing to the market slump. Analysts have described 2024 as a “lost year for electro-mobility,” emphasizing that the rapid slowdown was unexpected, especially after several years of growth in the EV sector.
Volkswagen, the largest automaker in Europe, is feeling the pressure from the downturn. In an effort to reduce costs and preserve its future in electric mobility, Volkswagen has agreed with unions to cut production by 730,000 units and lay off 35,000 employees. Despite these challenges, Volkswagen maintained its position as the top seller in Germany, while Tesla’s sales dropped sharply by 41%, with its market share falling from 2.2% to 1.3%. Tesla sold only 38,000 units in the German market, despite the launch of its Cybercab.
In contrast, traditional combustion-engine vehicles remain dominant. Hybrid vehicle sales surged by 12.7%, with nearly 950,000 units sold, while the EV share of total vehicle sales continued to shrink. The question now remains whether the German government will reintroduce EV subsidies to revive the market. Chancellor Olaf Scholz, who ended the previous subsidy program, has suggested the possibility of a European-wide support initiative. However, with the EU planning to phase out combustion engines, the urgency for action has never been greater. Without renewed incentives, experts fear that the EV sector in Germany may struggle to recover, leaving the country’s green automotive ambitions in jeopardy.
