AUTONEWS

German government cuts subsidies and sales of electrified vehicles collapse

With the subsidies granted by the German Government to rechargeable vehicles beginning to be withdrawn in some cases and reduced in others, the market immediately suffered. Models with 100% electric mechanics (EV) fell 54.9%, while plug-in hybrids (PHEV) saw the number of sales drop 19.6%. Meanwhile, vehicles powered by combustion engines increased demand, which rose 9.1% in gasoline models and 9.5% in diesel models.

These drops are partially explained by the fact that sales of these rechargeable models were brought forward in December, to still benefit from aid from the German State, so it remains to be seen what the extent of the damage will be at cruising speed. All the more so as there are brands, such as Tesla — and others will certainly follow — that have volunteered to cover the loss of incentives, so that customers who wish to do so continue to purchase EV or PHEV cars.

This change to the type of car “preferred” by German drivers was not exactly a surprise, especially because EVs and PHEVs are traditionally more expensive, only becoming more competitive with state aid. However, more and more builders have to become more efficient, from a production point of view, avoiding depending on subsidies. And proof that these are no longer necessary is that in the D segment, where Tesla's Model 3 and Model Y stand out, there are already battery-powered vehicles that are cheaper than their combustion rivals, with the same expected. that will happen in mid-2024, when the Citroën ë-C3 (which can now be ordered), the Renault 5 and the new Dacia Spring are offered for €25,000, or below this level, around 10 thousand euros less than today pay for most electric utilities.

Reflecting an obvious concern with the wallet, with the non-purchase of EV and PHEV (vehicles that allow lower usage costs), the segment that grew the most in Germany was that of models fueled by LPG (liquefied petroleum gas), interestingly enough Dacia's specialty, demand for which increased by 43.9% compared to December. Strangely, cars powered by natural gas fell by 39.1%, and this is a solution that German manufacturers are betting on, especially those from the VW Group. This is a similar technology to LPG — they are both bi-fuel, as they can burn gasoline or gas, with lower usage costs — but the drop in sales in one case and a clear increase in the other are significant.

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