Germany has witnessed a significant downturn in electric vehicle registrations during the third quarter. According to EY, new registrations plummeted by 45%, totaling 92,000 vehicles compared to the same period last year. The abrupt cessation of environmental incentives has left the market struggling to recover, maintaining low levels of activity.
German manufacturers, despite a 22% drop in registrations, managed to expand their market share from 40% to 57%. BMW defied the trend by increasing its electric vehicle sales by 10%. Conversely, Renault/Nissan/Mitsubishi and Stellantis reported dramatic declines of 92% and 78%, respectively. Chinese manufacturers also saw a 50% reduction in registrations, with a lower market share compared to the previous year, although their share grew from 8% to 11% over the first nine months of the year.
EY's Constantin Gall remarked that Germany is not alone in this trend, as a notable reluctance to purchase has caught the industry off guard across Europe. Despite some countries continuing to offer substantial subsidies, the overall development has lagged behind expectations, with no signs of an imminent electric boom.
Volkswagen remains the market leader despite a 37% drop in registrations, followed by BMW and Tesla. Meanwhile, Mercedes-Benz and BMW face challenges, particularly in China, with BMW dealing with brake issues and projecting a noticeable profit decline. The European Commission's potential tariffs on Chinese electric vehicles further complicate the outlook, impacting manufacturers like BMW, which has already removed the iX3 from its website due to potential cost implications.
