Automobile Industry in Germany Shows Renewed Growth in August, Particularly Electric Vehicles Recording Significant Progress - Augumnt Car Market in Germany Increases Once More, Particularly for Electric Vehicles
The German car market continued to struggle in August 2021, with economic and geopolitical uncertainties adding to job concerns, as noted by automotive market expert Constantin Gall from the consulting firm EY.
According to Gall, private buyers and companies are still holding back on orders, contributing to the market's sluggish performance. The current development in the car market, he suggested, could be due to special effects. Given these conditions, the industry must prepare for a long period of stagnation, Gall stated.
The Association of the German Automotive Industry (VDA) reported that the German passenger car market is still significantly below the pre-crisis level of 2019. The KBA reported a total of 207,229 new passenger cars registered in August 2021, a quarter lower than the same period in 2019.
Hybrid vehicles accounted for 39.8% of all new registrations in August 2021, an increase of 19.1% compared to the previous year. Pure electric cars accounted for 19.0% of all new registrations, a notable increase from the previous year. In contrast, diesel cars saw a decrease in market share, with only 13.1% of new registrations in August 2021, a decrease of 9.2% compared to the same month the previous year. Cars with a gasoline engine accounted for 27.6% of new registrations, a decrease of 18.2% compared to August of the previous year.
Gall stated that there is currently "little to suggest a significant recovery" in the entire new car market. He attributed this to the end of state subsidies last year, which led to a collapse in sales of electric cars, from which the market is currently recovering. However, electric car sales are significantly higher than in the previous year but still significantly below the level of 2023, Gall explained.
The new rules for additional assistance systems and a new cybersecurity directive that came into force in the EU at the beginning of July 2024 may have impacted the car market in August 2024. The German new car market in August 2024 saw the strongest increase from Audi among domestic manufacturers, driven mainly by growth in electric vehicle sales and strong market demand for Audi's electric models such as the Q4 e-tron variants.
In July 2021, there was a significant increase of 11.1% in new car registrations compared to the previous year, offering a glimmer of hope for the struggling car market. However, Gall cautioned that this increase may have been due to special effects and warned against reading too much into it as a sign of a broader recovery.
In conclusion, the German car market continues to face challenges, with economic and geopolitical uncertainties, as well as changes in consumer preferences and regulations, impacting sales. While there are signs of recovery, such as the growth in hybrid and electric vehicle sales, the market is still struggling to return to pre-crisis levels.
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