Sales of electric vehicles in Germany fell off the proverbial cliff once the government there cut buyers’ incentives at the start of the year, according to statistics from its federal transport agency and leading industry associations.. Global EV sales growth .Registrations for new battery electric vehicles — hence, a measure of actual sales — plummeted more than 83% to 18,000 units from more than 104,000 in December 2023, according to the country’s Kraftfahrt-Bundesamt (KBA), or motor vehicle registry. .Likewise, the country’s largest automobile manufacturers’ lobby group, the VDA, reported EVs made up just 15% of all vehicle sales in January, down from 55% the month before. .It comes after the German government decided in mid-2022 to reduce incentives for fully electric EVs and discontinued them for hybrids altogether, arguing they had had become attractive enough without support payments. Sweden followed suit in November, ending theirs in a matter of hours..Small wonder, given the cost to governments..Last year German buyers received up to 6,000 Euros — about $8,800 — on top of any other incentives offered by auto manufacturers, which added as much as 3,000 Euros in additional discounts. These are made more attractive by falling prices for EVs in general, which are expected to fall in line with combustion vehicles by 2025 — hence, the rationale for European governments to cut subsidies..Although Germany’s VDA still expects sales of battery powered EVs to increase about 8% this year — the ones with the higher subsidies — sales of plug-in hybrids are expected to fall by a third, reducing overall EV sales by 8%..The German government has an ambitious target of seeing 15 million EVs on the Autobahns by 2030, but would have to register about 5,000 battery powered cars a day — every day — for the next six years to reach that target, transportation think-tank Agora Verkehrswende told German news site Spiegel..Germans remain reluctant to give up their beloved gas powered cars despite EU moves to essentially ban the internal combustion engine. .In March the EU parliament was forced to delay a vote on car fleet emissions after German lawmakers insisted on exemptions — it has the highest transport emissions of any EU member. Germany also has the largest automobile market; one in three cars sold in Europe are in Germany..Consequently, environmental groups are accusing the centre-right FDP of holding Europe’s climate policy “hostage” to partisan political aims. Other countries, including Italy, Poland and Bulgaria also plan to oppose the EU legislation.. Canadian EV sales .The German experience raises the question of whether EVs are viable without government subsidies. The British government offers 3,000 pounds for EVs purchased under 50,000 pounds, while in France the subsidy is up to 12,000 Euros, including a recycling bonus. The US government is offering up to $7,500 in tax credits for plug in vehicles. The Canadian government is more stingy; in this country the number is $5,000..Consequently Canadian EV sales are lower than other parts of the world — and indeed, vary by province. In 2021 only 5.6% of new car sales were EVs compared to 19% in the UK and a whopping 75% in Norway. In BC, one in five new cars are electric compared to one in 13 in Ontario. .Canada is under pressure to match at least the US levels of incentives or risk making the domestic auto industry noncompetitive. Industry advocates insist higher subsidies are the key to increasing uptake.. Canada EV sales by region .In December the department of Environment and Climate Change (ECC) introduced new sales targets requiring 20% of new passenger cars, SUVs and light trucks be emission free by 2026; 60% by 2030; and 100% by 2035. In addition it announced plans to install 87,000 charging stations by 2027.."Zero-emission vehicles are where the rubber hits the road for cost-conscious Canadians who want to help the environment while getting off the roller-coaster of high gasoline prices. With Canada's deep experience in auto-parts manufacturing, vehicle assembly, and with all of the critical minerals needed for batteries found here, Canada is well positioned to be a leader in making the vehicles that the world is looking to drive,” Climate Change Minister Steven Guilbeault said at the time.
