30% plugin vehicle share in December!
The German plugin market experienced a turbulent year in 2023, mainly due to subsidy cuts. Initially, subsidies were cut to PHEVs starting January 1st, 2023, causing plugin hybrids to crash in 2023. PHEV registrations dropped 52% to 175,724 units, representing just 6.2% of the overall market.
Then, on September 1st, 2023, subsidies for BEV company cars ended, resulting in a delivery peak in August followed by a short hangover. As subsidies for private buyers were supposed to end in December, another delivery peak was expected in the last month of the year.
However, on Saturday, December 16th, the local government decided to end EV subsidies earlier than expected, on Monday the 18th. Despite some brands discounting the value of the subsidy in the following days, the sales peak wasn’t as big as expected, with December ending at 54,654 BEV registrations.
BEVs scored a 23% share of the auto market in December, adding to the 7% on the PHEV side, leading to a 30% plugin share. The full-year 2023 numbers ended at 25% (19% BEV), a 6% drop from the 2022 numbers. However, the 2023 BEV share (19%) was up 1% compared to 2022, jumping 6% over the country’s 2021 BEV result despite subsidy cuts.
When looking at the BEV vs. PHEV breakdown, the former solidly outsold the latter. The sales breakdown changed dramatically from a 56% BEV vs. 44% PHEV in 2022 to the current 75% BEV vs. 25% PHEV. While PHEVs might rebound in the beginning of 2024, the overall trend is for them to progressively lose relevance.
In 2024, especially the first half, expect BEVs to experience a small sales hangover, balanced in the second half of the year. The German EV market shouldn’t see real growth until 2025 when local premium OEMs will launch their volume EVs, such as BMW Neue Klasse midsize EVs, Mercedes CLA EV, Audi A4 e-tron, and the much awaited VW ID.2 small hatchback. By the time the 2035 100% ZEV mandate from the European Union kicks in, the German passenger car market should be 100% BEV, assuming future governments do not change the rules of the game.
In December, the German EV market surprised with the BMW i4 leading in plugin market registrations, almost tripling the sales of its rival, the Tesla Model 3, which ranked 1,131 in registrations. Other models ranking highly included the Skoda Enyaq and Fiat 500e, rounding out the podium in 2nd and 3rd place, respectively. Interestingly, Tesla’s Model Y crossover had a weak end of the quarter, ranking 5th in December with 2,721 registrations.
Regarding the final 2023 table, the Tesla Model Y ranked first, with the VW ID.4 in second place, and Skoda Enyaq in third. The German auto market saw all podium positions taken by crossovers, reflecting a shift in the automotive market.
Top Auto Brands for Electric Vehicle Sales in Germany — 2022
In the brand ranking, Volkswagen topped the list in December, surpassing Mercedes and winning its 4th straight title. Tesla held onto the 3rd spot, and BMW could have snatched the 2023 bronze medal if the race had continued. Audi ended in 5th place, with Opel surpassing Hyundai in December.
