Germany witnesses 27% drop in electric car sales in 2024

Sales of new battery-powered cars plunged by 27.4 percent in Germany last year, official figures showed Monday, as crisis hit the country's flagship auto industry.

Overall, some 2.8 million new vehicles were registered in Europe's largest car market in 2024, one percent fewer than in the previous year, the KBA federal transport authority said.

Of those, only 380,609 were electric vehicles, equivalent to a market share of 13.5 percent.

The weak sales figures represented a "lost year for electro-mobility", said EY analyst Constantin Gall.

After years of growth, demand for battery-powered cars in Germany has lost momentum since the withdrawal of government subsidies at the end of 2023.

High prices for new EV models, patchy charging infrastructure, and range limitations had also dissuaded many consumers from picking battery-powered cars, Gall said.

Falling sales of battery-powered cars underline the challenges facing Germany's wider auto industry.

The sector has struggled with weaker demand and a troubled switch to electric vehicles, with manufacturers and suppliers announcing a slew of job cuts last year.

The crisis in the auto industry has become a political issue ahead of the February 23 elections.

Some critics have linked Germany's general economic malaise with a forced switch to electric vehicles that they say has undermined carmakers.

Europe's largest economy looked likely to have recorded its second straight year in recession in 2024, with the outlook for 2025 not much more positive.

"In order to spark new sales momentum, strong impulses are needed, including in terms of price," Gall said.

A new support program could provide a "significant boost" to sales of electric vehicles, he said.

The weak outlook for the economy as a whole meant that carmakers could not hope for much more than a "slight increase" in sales in the year ahead, he said.