The German Association of the Automotive Industry (VDA) said electric vehicles accounted for 30.4% of new vehicle registrations in October, a record.
“The explanation is relatively simple,” said Germany Trade & Invest ‘automotive expert’ Stefan Di Bitonto. “Carmakers decide what sort of vehicles they allocate parts like semiconductors to. The profit margins for electric vehicles are currently quite high. That’s because the German state subsidises the purchase of EVs with up to EUR6000. Additionally dealers offer a EUR3000 rebate which is making buyers think that now is the right time to purchase a car. So it makes sense to put semiconductors in EVs. Everyone all around is profiting.”
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Overall German sales fell 35% to 178,700 cars last month. There were 54,400 new EV registrations, up 13%. Volume of BEVs rose 32% month on month.
“The examples of China and Norway, as well as the US as far as Tesla is concerned, suggest that if the state purchase premiums continue at this level, sales and registration figures for EVs will flourish,” said Di Bitonto.
“This part of the automotive market is quite resistant to supply shortages because carmakers will continue to use the parts they have to build the vehicles that are the most profitable.”
Electric car registrations more than tripled, from 63,281 to 194,163, from 2019 to 2020, according to the German government agency KBA. And 115,296 EVs were registered from January to May of this year alone.
“It’s also clearly the case the acceptance of EVs in Germany is growing,” Di Bitonto added. “It’s a mutually reinforcing trend. People are buying EVs now because it’s advantageous to do so, but the increase in the number of EVs on the roads will almost certainly further boost their popularity regardless of the current shortages.”
Germany Trade & Invest (GTAI) is the economic promotion agency of the Federal Republic of Germany.
