Surge in Electric Vehicles: About Twenty Percent of New Cars Now Electric
July 2021 saw a significant increase in the number of electric vehicles (EVs) registered in Germany, with over 48,600 new EVs hitting the roads, according to data from the Federal Motor Transport Authority. This represents a 58% increase compared to the same month in the previous year.
The surge in EV registrations is attributed to a combination of factors, with Imelda Labbe, the president of the German Association of the Automotive Industry (VDIK), highlighting the introduction of technologically advanced and affordable new electric models by various brands as a key driver.
"These new electric models, introduced by brands such as Volkswagen, BMW, and Mercedes-Benz, are affordable for a wide range of customers, making electric vehicles more accessible to the masses," Labbe stated.
Labbe also emphasized the importance of a larger vehicle offering in the entry-level segments for the growth of EV registrations. "The larger vehicle offering in the entry-level segments is a key factor in the increased number of electric vehicle registrations, as it provides consumers with a wider range of options to choose from," she added.
The increased number of electric vehicle registrations in July is also being supported by government incentives, including a raised purchase subsidy for electric cars and other tax incentives to promote EV adoption. In June 2020, as part of an economic recovery plan in response to the COVID-19 pandemic, the German government increased the purchase bonus for electric cars from €6,000 to €9,000 (applicable to vehicles costing less than €40,000) and introduced other tax incentives to make EVs more financially attractive to buyers. These incentives were initially set to expire by the end of 2021 but were extended to 2025 for new all-electric cars and plug-in hybrids.
By July 2021, Germany had reached its original goal of 1 million electric vehicles on the road, indicating growing consumer acceptance and market momentum. Such government support combined with improving EV availability and consumer interest contributed to a notable rise in new EV registrations in July 2021.
The trend of rising EV market share in Germany is fueled by policy measures starting from 2016 and accelerated during the COVID-19 pandemic recovery phase. The significant increase in newly registered EVs in July 2021 is consistent with these trends and suggests that the shift towards electric mobility in Germany is gaining momentum.
In conclusion, the sharp increase in EV registrations in July can be explained by the combination of enhanced financial incentives, a strong government push for electrification, and reaching a national EV adoption milestone. As more technologically advanced and affordable electric models become available, it is likely that the trend of rising EV registrations will continue in Germany and beyond.
- Brands such as Volkswagen, BMW, and Mercedes-Benz have introduced technologically advanced and affordable new electric models, making electric vehicles more accessible to a wider range of customers.
- The increased number of electric vehicle registrations in Germany is supported not only by government incentives like raised purchase subsidies and tax incentives, but also by a larger vehicle offering in the entry-level segments, providing consumers with a wider range of options to choose from.
