Electric Car Sales Plummet 37% in Germany as Slump Deepens #NewsGerman

(Bloomberg) — Germany’s electric-vehicle sales slumped in July, extending a broad pullback since incentives ended late last year and undermining automakers’ plans in the EV shift.

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Registrations of battery-powered cars fell 37% in Europe’s biggest auto market to 30,762 vehicles compared to a year ago, Germany’s federal motor transport authority KBA said Monday. It’s the biggest drop since December when the German government suddenly scrapped EV subsidies. Sales of vehicles without a plug gained 7%.

The broad EV slowdown across Europe wherever incentives are removed is leaving carmakers like Volkswagen AG wrong footed on production plans while the overall shift is stumbling. Well-off and eco-conscious buyers are more or less tapped out, and the industry’s lack of affordable battery models is cutting mass-market consumers out of the market.

“The ramp-up of e-mobility is proving to be unsustainable so far,” Constantin Gall, a consultant at EY said about the German results. “The market has lost all momentum and many customers doubt the prospects of electric cars.”

The share of electric-car sales in Germany in July slumped to just under 13% from 20% a year earlier, according to EY, at a time when automakers expected rapid uptake of battery-powered vehicles.

Registrations in Sweden, an EV leader, also fell in July to compound a slump since the start of the year. New electric car registrations dropped 15% in the month compared to last year, according to Mobility Sweden. Sales in Switzerland fell by 19%.

The slowdown leaves the auto industry exposed after investing billions in the ramp-up of the technology. VW, Europe’s biggest automaker, said last week it has cut capacity at high-cost plants in Germany and also might change the timing of its battery-production ramp-up. The slump in EV demand has also dimmed the mood on business prospects of the country’s carmakers that also include Mercedes-Benz Group AG and BMW AG, according to a survey.

EY’s Gall said that EVs sales in Germany will remain subdued for the coming months, challenging carmakers’ plans to boost sales and comply with stricter fleet emission targets in the European Union from next year. VW is particularly at risk and may face a €2 billion ($2.2 billion) negative impact on earnings next year as a result, UBS analyst Patrick Hummel said in a note.

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