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Statistics Speak: Germany's Booming EV Market and Future Trends

Explore the dynamic landscape of EVs in Germany, from city-wise adoption rates to market trends and future prospects.

Theresa Ferner | Nov 26, 2023 | 6 min read

Table of Contents

This article delves into the remarkable growth of EVs in Germany, exploring popular models, regional infrastructure, economic impact, and future predictions. It highlights how Germany's commitment to sustainable mobility and technological innovation is shaping its automotive sector.

1. The Growth of EVs in Germany

Historical Perspective: The landscape of Electric Vehicles (EVs) in Germany has undergone a significant transformation over the past decade. Historically, the adoption of EVs was gradual, but recent years have witnessed a remarkable surge. This shift reflects Germany's commitment to sustainable mobility and its embrace of technological innovation in the automotive sector.

Recent Trends: Recent statistics showcase a dramatic year-over-year growth in the EV market. In 2023, EVs took a commanding 55% of the German auto market in December, with full electrics (BEVs) accounting for a third (33.2%) and plug-in hybrids (PHEVs) for over a fifth (22.2%). This growth trajectory suggests a rapid transition to electric mobility, outpacing many other European countries.

Government Initiatives: The "Kraftfahrzeugsteuer," often abbreviated as "KraftSt," is a crucial aspect of Germany's tax system, classified as a federal tax of the German Basic Law (Grundgesetz). The Kfz Steuer applies to various vehicle-related situations. Through this tax, the German government is able to generate revenue that plays a vital role in the country’s financial stability and infrastructure development.

2. Popular EV Models in Germany

Top-Selling EVs

As of October, the Tesla Model Y has been the most popular electric car of 2023 with 40,257 new registrations. Volkswagen follows the change with 11,683 new plug-in electric car registrations, closely followed by Mercedes-Benz and BMW. This trend indicates a strong preference for established brands transitioning into the EV space.

The image shows a line of sleek electric vehicles parked in a row, with a focus on a dark-colored car in the foreground. The backdrop features a building with the sign "DC Aviation," suggesting the location is near an airport or an aviation-related facility. The overcast sky and industrial setting contrast with the modern and clean design of the vehicles.

Consumer Preferences

German consumers show a growing preference for a mix of BEVs (Battery Electric Vehicle) and PHEVs (Plug-in Hybrid). While brands like Volkswagen, Mercedes-Benz, and BMW dominate the BEV segment, other manufacturers like Hyundai and Kia are also setting new records, indicating a diverse market catering to various consumer needs.

Affordable EVs

The electric vehicle (EV) market in Germany is witnessing a surprising trend towards affordability. Advances in battery technology and increased production have substantially reduced battery costs, making EVs more budget-friendly. Cardino has an important role in this shift. As a marketplace connecting EV sellers with car dealerships, we at Cardino streamline the process of selling and buying EVs. For sellers, the process includes instant car valuation using real-time market data and AI, a digital vehicle inspection, and a hassle-free auction system ensuring the best price.

3. Regional Analysis: Most EV-Friendly Cities in Germany

Germany is increasingly becoming a haven for electric vehicle (EV) owners, with several cities leading the way in providing efficient and cost-effective charging infrastructure. The top German cities for EVs, considering the number of public charging stations and the cost of their use compared to fueling a gasoline vehicle are as follows:

Hamburg tops the list as the best city for EV drivers in Germany, with a score of 6.27. It boasts 678 public charging points, priced at €0.39 per kWh. Fully charging a 50-kWh EV battery here costs just €19.50 per charge, saving €53.10 compared to fueling a gasoline vehicle.
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Following closely is Munich, scoring 6.04 and ranking third in the number of public charging stations (533) after Hamburg and Berlin, which has 936 stations. With an average monthly salary of €3,162 in Hamburg, EV owners spend less than 1% of their income per charge.
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Düsseldorf takes the third spot, offering 161 public charging points. The average cost for a charge here is €0.38, totalling €19 per full charge, slightly cheaper than in Hamburg and Munich.
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Berlin, the capital city, ranks fourth. Despite having the most charging stations (936), it also has some of the highest charging costs at €21.50 (€0.43 per kWh) for a full 50-kWh battery charge.
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In a European context, the Netherlands leads with a score of 5.76, boasting the most charging stations (41,223) and one of the lowest costs for charging (€0.09 per kWh). Germany, with an average charging cost of €0.14 per kWh, ranks second, followed by France at €0.17 per kWh.

And where are improvements to be made?

On the other end of the spectrum, Cologne ranks as the least favorable city for EV drivers, with a score of 2.50. Along with Frankfurt, it's one of the most expensive cities for charging EVs, with a cost of €0.44 per kWh or €22 per charge, the highest among all cities analyzed. However, this cost is still significantly lower than refueling a gasoline car, which averages €72.48.
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Frankfurt and Münster follow as the second and third worst cities, respectively, due to their low number of public charging stations (128 and 74, respectively). Wiesbaden, with a population of nearly 300,000, has only 89 charging stations, making it the fifth least favorable city for EV drivers.

4. Infrastructure Development in Germany

As we can already see Germany is making significant strides in developing its electric vehicle (EV) infrastructure, with the goal of transitioning to electromobility by 2030 to meet EU emission standards. The government's stimulus package in 2020 includes measures to promote EV sales, aiming to increase registrations of vehicles with alternative drives. Although the target of 10 million registered alternative drive vehicles by 2030 might not be fully met, the trend towards a more EV-dominant landscape is clear, with a significant shift expected by 2032.

Future Predictions on EV Development in Germany

Profit Contribution: EVs will start contributing to profits from 2023.
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Decline in Combustion Engines: Registrations of new combustion engine vehicles to decrease by up to 3 million by 2030.
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Stimulus Package Impact: Measures introduced in the 2020 stimulus package are expected to promote the sale of an additional 650,000 EVs.
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Government Goals: The goal of 10 million registered vehicles with alternative drives by 2030 may fall short.
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Market Shift by 2032: A more balanced mix of combustion engines and alternative drives, with a lean towards EVs, is anticipated by 2032.
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Long-Term Transition: Despite shortfalls, a significant acceleration in the transition to electromobility is expected in the long term.

5. Economic Impact of EV Growth

Market Value: The EV market in Germany is not just growing in terms of vehicle numbers but also in economic value. The market is projected to reach a staggering €52.8 billion in 2023, with an expected annual growth rate of 14.39%, leading to a market volume of €103.4 billion by 2028.

Job Creation: The EV sector is a significant contributor to job creation, offering new opportunities in various fields related to electric mobility.

Impact on Related Industries: The rise of EVs is influencing other sectors, including energy, manufacturing, and technology, showcasing the far-reaching impact of this automotive revolution.

The image captures a black car in motion at night, with a long exposure creating streaks of light in the background. The vehicle is sharply in focus against a blur of city lights, conveying a sense of speed and urban energy. The warm hues of the streetlights contrast with the cool tones of the twilight sky.

Conclusion

With significant investment in EV infrastructure and supportive government policies, Germany is not only meeting EU emission standards but also setting a benchmark in the EV market. The country's shift towards EVs, while facing challenges, is expected to bring substantial economic, environmental, and social benefits in the long run.

FAQs

What is the current growth trend of EVs in Germany?

EVs have seen a dramatic year-over-year growth, accounting for 55% of the German auto market in December 2023.

Which are the most popular EV models in Germany?

The Tesla Model Y leads in registrations, followed by models from Volkswagen, Mercedes-Benz, and BMW.

What cities in Germany are most EV-friendly?

Hamburg, Munich, and Düsseldorf are among the top EV-friendly cities, based on public charging infrastructure and costs.

What is the predicted economic impact of EV growth in Germany?

The EV market is projected to reach about €52.8 billion in 2023, with significant job creation and impact on related industries.

What are the future predictions for EV development in Germany?

EVs are expected to contribute to profits from 2023, with a decline in combustion engines and a significant shift towards EVs by 2032.

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