In November sales of battery-powered electric vehicles plunged by nearly 22 percent, with EVs making up around 14% of the totalNew car sales in Germany dropped in November, driven by a sharp fall in demand for electric vehicles, official data showed Wednesday, a further sign of the troubled EV transition.
A total of 244,544 vehicles were registered in Europe's biggest auto market last month, half a percent down from a year earlier, the KBA federal transport authority said.
Apart from an uptick in October, new car sales in Germany have been trending down for months.
In November sales of battery-powered electric vehicles plunged by nearly 22 percent, with EVs making up around 14% of the total - down sharply from the average in 2023.
After many years of growth, demand for electric vehicles in Germany has been decelerating since the phaseout of government subsidies at the end of 2023.
The loss of the subsidies "robbed the market of all momentum," said analyst Constantin Gall from consultancy EY.
"Electric cars are losing market share even though new and attractively priced models are coming onto the market."
Falling sales in Germany reflects a broader trend in Europe, where the transition away from combustion engines is moving slower than expected.
High EV prices, sometimes expensive charging, patchy charging infrastructure and insufficient driving range are all contributing to consumers' reluctance to dump their fossil-fuel models, according to Gall.
But he expects to see a rebound in EV sales as manufacturers race to meet stricter EU emissions requirements due to come into force in 2025.
The new targets can only be met if a high proportion of new cars sold are electric, leading manufacturers to "significantly reduce their prices or offer very favourable financing terms," said Gall.
The German auto sector is battling many problems, from weak demand at home and in key overseas markets like China, to high manufacturing costs.
Car giant Volkswagen is weighing factory closures in Germany for the first time to cut costs while rivals BMW and Mercedes-Benz have also reported falling profits and warned of a worsening outlook.
