Germany: Electric and alternative-fuel vehicle shares continue to rise despite subsidy cuts

The share of fully electric passenger cars in Germany continues to grow rapidly, with registrations rising by more than 37% in the first seven months of 2023 compared with the same period the previous year, according to data published by the Federal Motor Transport Authority (KBA). This is despite the country reducing subsidies for their purchase from January. With nearly 270,000 new vehicles, electric cars accounted for one sixth of all newly registered vehicles.

The reduction in what had originally been generous subsidies for electric car purchases meant that the share of electric cars among newly registered vehicles fell to just 10% in January before gradually climbing to 20% by July. This was because many people planning to buy an electric car did so in December, when subsidies for their purchase were higher. Electric cars accounted for a third of newly registered vehicles in December 2022.

Newly registered vehicles with alternative powertrains, including electric cars, plug-in hybrids and fuel-cell vehicles, accounted for nearly 46% of the 1.64 million newly registered vehicles from January to the end of July. That was 17.3% more than in the same period the previous year.