German electric car market doubles in June

According to the Federal Motor Transport Authority (KBA) new registrations of electric cars grew by 118 per cent in June, totaling 18,897 vehicles and thus continuing to expand at full speed. The proportion of electric vehicles on the overall sales market rose to 8.6 percent. This means that in the first half of 2020, registrations nearly doubled – despite the corona crisis – to 93,682 electric cars (+96 percent).

In June the dynamic developments were again driven by the plug-in hybrids (PHEVs). They added 274 percent, climbing to a new record of 10,749 units. Their share of new electric vehicle registrations rose to 57 percent. The market for battery-electric vehicles (BEVs) increased to 8,119 units, which equates to growth of 41 percent.

The German automotive industry pushed up its share of the electric car market to 67 percent last month (46 percent in June 2019). The model offensive is in full swing. German group brands already offer around 70 different electric models; by the end of 2023 they will have more than 150.

In contrast to commercial buyers, private customers accounted for a modest 28 percent of new electric car registrations in June (35 percent of the overall car market). “The reduced rate of VAT for six months from July 1, 2020, in combination with the major increase in the environmental bonus, should dissolve the backlog in private demand during the coming months. Manufacturers, traders and customers now have clarity regarding the incentives for electric cars. Both of these measures are important instruments for encouraging renewal of the vehicle fleet with climate-friendly and environmentally friendly electric vehicles,” stressed Hildegard Müller, President of the VDA).

The higher environmental subsidy for purchasing vehicles with electric or hybrid motors came into force this week, and applies retroactively from June 3, 2020. According to the Federal Office for Economic Affairs and Export Control (Bafa), by the end of June 214,269 applications had already been filed for the smaller previous environmental bonus. In June the tax incentive boosted the proportion of company cars in the electric segment to 39 percent, which was far higher than their 28 percent share of the overall car market.

The KBA reported that on April 1, 2020, the number of electrically powered cars on German roads showed a year-on-year rise of 67 percent to over 284,000 units. Hildegard Müller commented: “To continue successfully supporting the market ramp-up of electric mobility, it will be crucial that the expansion of the charging infrastructure keeps pace with the dynamic development of the market. Battery-electric vehicles and plug-in hybrids can become established throughout the market only if there is sufficient charging infrastructure.”

Production of electric passenger cars was resumed in May. The German OEMs increased their global production by 17 percent to 36,200 electric cars, taking their year-to-date total to 72,800 BEVs (+21 percent) and 115,400 PHEVs (+52 percent).