The surge in sales of electric cars in Germany

The German automotive market recorded a clear acceleration in June, driven by electric cars, whose sales were supported by incentives. ‘Green’ vehicles have reached the third highest share ever.

According to data fromFederal Automobile Agency (KBA) over 296,000 cars were registered last month, an increase of 15.7% year-on-year. Sales of new electric cars jumped 78.2% in June, accounting for 28.4% of the market. This quota has only been exceeded on two occasions: in August 2023 (31.7%) and in December 2022 (33.2%).

Bonuses for electric cars

Demand from private individuals was supported by the bonus for the purchase of electric and hybrid vehicles, reintroduced by the German government at the beginning of the year, amounting to between 1,500 and 6,000 euros. The main beneficiaries of this measure are not necessarily the German car manufacturers: according to some analysts, the Chinese brands would benefit first and foremost, BYD on the front line.

In detail, second the consultancy company EYpublic subsidies for the purchase of electric vehicles in Germany disproportionately benefit foreign manufacturers. Again according to EY, the market share of Chinese groups went from 4.9% to 7.2%. Among them, BYD reports spectacular year-on-year growth of 273.7% and Leapmotor of 366.2%.

The strategy of Chinese manufacturers

Chinese builders are particularly aggressive in the entry-level segment, “where the main target of the subsidy lies: price-sensitive and low-income buyers, for whom state aid is often crucial in the purchase decision.”

Tesla’s return to Germany

For its part, the American Tesla seems to be back in vogue: its sales increased by 317.6% on an annual basis in June, reaching 7,768 units, after being penalized last year by the controversies involving its billionaire CEO Elon Musk, who was close to American President Donald Trump at the time.

Despite the acceleration observed in June, the German automotive market remains weak, specifies the analyst, who recalls that sales are still 20% lower than those of 2019, before the crisis that hit the sector.