Since September 1, the generous subsidies in Germany for the purchase of an electric car have been significantly reduced. This has drastic consequences for sales. Cars like the Volkswagen ID.4 and Dacia Spring are in freefall in the September 2023 rankings, while a Thai-built car that has been on sale for 10 years returns to the top 50.
The trend seems to be the same everywhere in Europe: people want to drive electric, but they have to be spread out. With large discounts on purchases, for example, or - as in the Netherlands - with additional tax benefits for the business driver. If the government limits showers, you immediately see the consequences.
In Germany, the subsidy on an electric car was almost 7,000 euros, but since September 1, the scheme has been drastically reduced and it no longer applies to business drivers. For private buyers, the subsidy is 4,500 euros (up to a purchase price of 45,000 euros), as long as the pot of money does not run out. That is still more than in the Netherlands, but nevertheless the market for electric cars in Germany is now coming to a screeching and grinding halt.
Especially the Volkswagen ID.4 and ID.5 are set aside by the Germans as a fleeting one-night stand. In August 2023 they were still in fourth place, but now they have to settle for place 57. The Dacia car sellers are also left with bags full of coffee and untouched sugar cubes. The Dacia Spring was very popular for a while thanks to the generous subsidy (place 20 in August), but has fallen to 98th place. A third model that notices the less than positive consequences of the phasing out of subsidies is the Cupra Born. He is in 78th place in September 2023, while he was 13th in August.
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Ora, a Chinese brand, made a great start with the Funky Cat. Perhaps the Germans fell for its Volkswagen Beetle appearance. But without the subsidy, interest quickly disappeared. The Chinese car is now 148th, after being a respectable 38th in August.
Without subsidies, German motorists are returning to old habits. Cheap petrol cars return to the top 50, such as the Citroën C3 (37), built in Thailand and now more than 10 years old. Mitsubishi Space Star (41) and the Skoda Fabia (33). The familiar Volkswagenmodels cannot be ignored from the upper regions of the rankings.
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The Tesla Model Y is in seventh place and is still the best-selling electric car in Germany.
What will happen next with electric cars in Europe if governments withdraw or significantly reduce subsidy schemes? Climate Minister Rob Jetten says that European policy will be introduced in the coming years, but how it will be designed is not yet known.
This post was last modified on October 11, 2023 9:10 am
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