Electric cars: Worldwide sales figures slump

To ensure a higher proportion of electromobility on the roads, many states introduced attractive premiums for buyers of electric cars. At present, these government subsidies are being withdrawn in many places. This can be seen in the falling sales figures for electric cars. But there is also one country where the boom continues unabated.

Electric car market collapses

In recent years, electric cars have celebrated a real boom. Yet for some buyers, it was not primarily environmental protection that encouraged them to buy. Instead, it was government-funded purchase incentives that drew motorists away from using an environmentally harmful internal combustion engine. In this country, for example, buyers receive the so-called environmental bonus. In many places, the companies themselves also received attractive subsidies from the state. Since January 2023, however, many states have drastically cut their support in this area.

With shrinkage of the state financial injection, the e-car market has also collapsed. Figures now emerging from a report by Rystad Energy show that the share of electric cars sold has dropped from 23 percent in December 2022 to just 14 percent in January 2023. As a result, a total of 672,000 electric-powered vehicles were sold, only about half as many as in December 2022. From Rystad Energy’s perspective, this could lead to a longer-term slump in the market.

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US market underscores thesis

Demand for electric cars has also plummeted in this country with significant cuts to the environmental bonus. Instead of the 6,000 euros for an electric car with a net list price below 40,000 euros, it is now only 4,500 euros bonus that the government pays to buyers. While the share of electric cars sold was 55 percent in December 2022, it was just 15 percent in January 2023. The removal of the subsidy is also making itself felt in China. Here, almost 50 percent fewer electric cars were sold in January 2023 than in December 2022. Since China is generally considered a pioneer in the field of electric mobility and already boasts a high proportion of electric cars, this is alarming.

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A look across the pond to the United States makes it clear what happens when the government continues to heavily subsidize. Thus, the United States continued to rely on a tax policy that is very conducive to electric cars. Indeed, attractive credits can be secured here. And this is also noticeable in the figures. Finally, contrary to the global negative trend, sales figures rose in the land of unlimited opportunity. This makes it clear that the mobility revolution cannot be based solely on the good will of the people. Rather, financial incentives must be created.