MUNICH (dpa-AFX) — Electric vehicles have regained popularity in Germany. As the first half of the year draws to a close, multiple indicators suggest that their market share is set to increase significantly in 2025.
Over the first five months, the share of electric cars among new registrations recorded by the Federal Motor Transport Authority consistently exceeded last year's figures. Future-oriented order intake also showed a positive trend. Manufacturers contributed on several fronts in the early months of the year — partly because many are under pressure to sell more electric vehicles due to stricter CO2 fleet emission limits.
This is reflected in the discounts offered on the most popular models, which have risen markedly for electric cars over the course of the year: from 13.7 percent in January to 17 percent in May, according to industry expert Ferdinand Dudenhoffer. Although discounts dipped slightly in June, this could be attributed to the sector's own success, namely, improved order books.
The improved order situation is also confirmed by Thomas Peckruhn, Vice President of the ZDK industry association, spokesperson for brand dealerships, and himself head of a car dealership group. He describes the first half of the year as not bad despite challenging conditions, and remains cautiously optimistic for the second half.
Better Supply — Higher Demand
Peckruhn, however, sees the main driver for electric cars not in pricing: rather, he notes that the product range has now expanded considerably, especially in the high-volume segments. As the range of options grows, more customers are making the switch. Additional models are also slated for release in the coming years, offering further hope for the market.
Nevertheless, price remains a crucial factor in car purchasing decisions — and according to Dudenhoffer's calculations, electric vehicles are shedding their previous disadvantage of higher upfront costs. Most recently, the price gap between combustion-engine cars and pure electric vehicles fell below €4,000. At the start of 2024, it was sometimes twice as high, and in the early days of electromobility, the gap was as much as €15,000. Dudenhoffer now sees price parity within reach — thanks in part to falling battery prices. He expects this to be achieved well before 2030.
Resurgence of Self-Registrations and Sales to Rental Companies
Beyond pure electric models, the industry expert also anticipates rising discounts in the second half of the year — among other reasons, due to intensifying competition. This trend has already led to a resurgence of another method for moving cars into the market during the first half of the year: self-registrations by dealers and manufacturers, and frequent high-discount sales to rental companies.
From January to May, these accounted for 36.6 percent of registrations. In the full year 2024, the figure was a good four percentage points lower. A large share of these vehicles, "after a short period, enter the market as young used cars with steep price reductions," says Dudenhoffer. For some brands, the share of such registrations exceeded 50 percent — sometimes much higher, as seen with Chinese electric vehicle manufacturer BYD, where
the expert now expects a significant drop in prices.
For future customers, these are generally positive developments: "New car buyers will continue to be aggressively courted in the second half of the year," Dudenhoffer is convinced./ruc/DP/he
