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Challenges in the Electric Vehicle Market
2024-11-06 17:55:08
Automotive
Business

Challenges in the Electric Vehicle Market

Image used under license from Shutterstock.com

The electric vehicle market faces significant hurdles as evidenced by recent trends in Germany and China. In Germany, new registrations of battery electric vehicles (BEVs) fell by 5%, while plug-in hybrids rose by 18%.

This decline highlights the need for improved incentives and infrastructure, as emphasized by VDIK President André Schmidt. Meanwhile, China experienced a surge in electric vehicle sales, increasing by two-thirds to 1.28 million units in October, fueled by substantial government incentives.

Despite these promising figures, German manufacturers like BMW are grappling with an 84% drop in profits due to technical issues and reduced demand in China. BMW remains optimistic, focusing on its new BEV models and the upcoming 'Neue Klasse' to boost sales.

As the automotive industry navigates these challenges, the contrasting situations in Germany and China illustrate the complexities of the global electric vehicle landscape.

Related news on that topic:

Volkswagen's Struggles and Future Directions

Volkswagen is currently navigating a tumultuous period marked by declining demand for electric vehicles and rising cost pressures. The state government is advocating for job protection amidst concerns over potential layoffs at the Baunatal plant and other locations. The works council emphasizes the necessity of maintaining a focus on e-mobility, viewing it as critical for the company's future. Despite these challenges, some sectors in Nordhessen remain stable, and political support for the automotive industry is evident. However, the company may need to consider drastic measures, including factory closures and executive changes, to regain profitability. As VW grapples with high labor costs and the need to restructure, it faces stiff competition from both local and international players. The iconic brand, crucial to Germany's economy, must adapt swiftly to the evolving market landscape to secure its legacy and retain its workforce.

Volkswagen's Struggle Amidst Austerity Measures

Volkswagen is facing significant challenges as it implements austerity measures to maintain competitiveness. CEO Blume emphasizes the need for savings while discussing flexible approaches, including potential plant closures and layoffs. The works council has expressed concern over the risks of these actions, fearing a detrimental impact on the company's future. The automotive industry is grappling with declining demand, particularly for electric vehicles, and increased competition from Chinese manufacturers. As a result, VW plans to cut bonuses and wages for its 120,000 employees, affecting around 10,000 workers. The broader industry faces similar struggles, marked by factory closures and financial pressures. The collective situation is described as a 'toxic cocktail,' highlighting the urgent need for strategic recovery in a challenging market.

Read 11 more recent news on this topic

The press radar on this topic:

gmx
5. November 2024 um 13:36

Number of new electric cars again declined

Environment
Economy
In October 2023, BEV new registrations in Germany decreased by 5%, while plug-in hybrids increased by 18%. The share of BEVs in all new registrations fell by 2 percentage points to 15%. VDIK President André Schmidt calls for incentives and infrastructure. The German automotive industry is struggling with sales problems, Volkswagen is announcing a rigid austerity program and plant closures.
heise online
6. November 2024 um 15:23

Electric Cars in China in High Demand Again | heise autos

Politics
Finance
Economy
China's automotive market is experiencing a turnaround thanks to government purchase incentives for electric and hybrid vehicles, as well as new combustion engine cars with small displacement. Those who trade in an old car can receive subsidies of up to 20,000 Yuan. In October, electric vehicle sales surged by two-thirds to 1.28 million, and total sales increased by 16 percent. Despite economic weakness and growing competition from domestic electric vehicle providers, China remains a very impo..
zeit
6. November 2024 um 11:20

Automotive Industry: BMW Profit Plunges

Economy
Politics
BMW suffered a massive 84% drop in profit to 476 million euros in the 3rd quarter due to brake problems and declining sales in China. Despite high upfront costs, BMW expects a stronger result in the 4th quarter to achieve its annual targets.
gmx
6. November 2024 um 13:46

Braking Problems and China: BMW Profit Plunges by Almost 84 Percent

Economy
Politics
Technology
BMW suffered a profit decline of almost 84% to 476 million euros in the 3rd quarter of 2024 due to technical problems with braking systems and weaker demand in China. Sales fell by 16% to 32.4 billion euros, and the profit margin fell by 7.5 percentage points to 2.3%. However, BMW sees long-term potential in the electric car segment and is sticking to investments in the "New Class".
CW

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