According to Bloomberg, as the signs of a sluggish electric vehicle market gradually spread, German pure electric vehicle sales are expected to decline for the first time in eight years.

On January 30, the German Automobile Association VDA said that shipments of pure electric vehicles in Germany are expected to fall by 14% this year to 451,000 units as subsidy cuts for electric vehicles drag down demand.

Sales of pure electric vehicles in Germany last declined in 2016, and have climbed every year since. In 2023, more than 524,000 pure electric vehicles were sold in the country, which is higher than the sales volume in other European markets. If the sales of pure electric vehicles decline by 14% this year, the market share of pure electric vehicles is expected to fall from about 18% in 2023 to 16%.

In addition, Germany's overall car sales in 2024 are expected to be 25% lower than pre-epidemic levels and will not recover as fast as the global passenger car market. According to Reuters, according to VDA expectations, global passenger car sales will increase by 2% this year to 77.4 million units, close to the pre-epidemic level of 78.8 million units. However, German passenger car sales are expected to decline by 1% to 2.82 million units, still a quarter lower than before the epidemic.

Manuel Kallweit, the chief economist of the VDA, said that supply chain problems have been basically resolved, but the business environment facing German automakers remains challenging.

Sales of electric cars in Germany fell by 16% in 2023 and are expected to fall by another 9% in 2024, according to the VDA. Among them, sales of plug-in hybrid vehicles will increase from 176,000 to 185,000. However, German electric vehicle production is expected to grow 19% this year to 1.45 million units, with most of them destined for export.

Germany is Europe's largest car market and has been one of the main drivers of electric vehicle adoption, but inflation, high car prices, and insufficient charging infrastructure are suppressing demand for electric vehicles, causing many manufacturers to delay the launch of new electric models, while leasing companies are also reducing the purchase of electric vehicles. Groupe Renault this week abandoned plans to take its electric car business public due to slowing market demand and a brutal initial public offering (IPO) market.