Automotive News Europe — 2023-02-07
Automotive Industry
Sales of electrified cars plunged in Germany in January as government incentives to encourage buyers were scaled back. Tesla bucked the downward trend by boosting volume through price cuts.
Registrations of full-electric cars were down 13% to 18,136, according to data from the KBA motor transport authority. Sales of plug-in hybrid cars fell by 53% to 8,850.
Registrations of gasoline cars were up 3.5% to 69,922 while diesels fell 1.2% to 39,230.
The total German passenger car market fell 2.6% to 179,247 units in January, compared with the same month in 2022.
Gasoline cars continued to have the greatest market share at 39%, followed by diesels at 21.9%. Full-electric cars had a 10.1% share while the share of plug-in hybrids was 4.9%.
The change in subsidies for electric vehicles at the beginning of 2023 had a direct negative effect on new registrations, industry association VDA said in a statement. Government incentives for plug-in hybrids were dropped in January while those for full-electric cars were significantly reduced.
Sales of full-electric cars are expected to increase by 8% in 2023 to 765,000 while plug-in hybrid sales will drop by 30% to 255,000, VDA President Hildegard Mueller told the German press.
Winners and losers
Tesla increased sales after cutting prices for its cars in mid-January by up to almost 17%. The EV maker saw registrations of its cars increase by 912% to 4,241 for 2.4 market share.
Other winners last month included Chinese-owned MG, with registrations up 170% to 483 vehicles; Suzuki, up 112%; Land Rover, up 83%; and Nissan, up 50%.
Market leader Volkswagen brand saw sales rise 1.3%, while registrations of No. 2 Mercedes-Benz rose 15%. Audi sales slipped 1%, while BMW fell 25%.
Among automakers whose sales fell were Seat, down 39%; Renault, down 36%; Opel, down 34% and Hyundai, down 6.9%.
The German passenger car market is still well below the pre-pandemic levels, the VDA said. In January, 33% fewer cars were registered than in January 2019.
Automakers are continuing to increase production of electrified vehicles in their German factories.
In 2022, 585,000 full-electric cars and 299,600 plug-in hybrid cars were built in Germany, the VDA said.