Germany's 2030 electric car target to fall short

MUNICH: Projections from management consultancy Deloitte show that Germany's electric car market will grow much more slowly than the government had hoped.

By 2030, only 11.2 million fully electric vehicles are expected on the road, falling 3.8 million short of the 15 million target, according to Deloitte's projections.

The now-collapsed German coalition government had in 2021 set the goal to make Germany the leading market for electric mobility, aiming for at least 15 million fully electric cars by 2030, excluding hybrid vehicles.

However, China remains the dominant player in the global electric car market.

The German government's abrupt decision to cancel its electric car subsidy in December 2023, due to budget constraints, dampened sales.

"To promote the acceptance of electric mobility, reliable framework conditions are essential because companies need planning security," said Harald Proff, head of Deloitte's automotive division.

The 11.2 million estimate is based on a model factoring in variables such as electricity and petrol prices, car insurance rates, and purchase incentives.

As of October 1, nearly 1.6 million electric cars were registered in Germany, according to the country's Motor Transport Authority.

A Deloitte survey of 1,000 respondents found that 40% support the EU's planned 2035 phase-out of new combustion engine vehicles, while 36% oppose it. The remaining 24% are neutral on the issue.

Deloitte's consultants are optimistic about the global rise of electric cars. "Companies should invest more in battery research to reduce vehicle prices and increase acceptance of e-mobility," Proff said, urging the automotive industry to push forward with innovation.

The survey was conducted at the end of October. According to Deloitte, 1,000 people over the age of 18 took part.