Europe’s biggest EV market is about to hit a perfect storm of problems
Germany is Europe’s biggest auto market, and it’s been one of the main drivers of EV growth. But now that is expected to change course, as EV sales are projected to drop – by 14% – for the first time in eight years.
Germany’s VDA, an interest group for the country’s automobile industry, says that battery-powered vehicles are likely to see a decline from 524,000 units last year – more than any other European market – to 451,000 units this year. Considering Germany is aiming to have 15 million BEVs on the road by 2030, that number is moving in the wrong direction.
It’s due to a number of factors – primarily because Germany pulled the plug on this EV subsidy program in December, a full year earlier than expected. Add nflation, rising car prices, and “sub-par charging infrastructure,” writes Automotive News Europe, into the mix, and it’s inevitable that sales will drop.
According to Automotive News Europe, manufacturers are pushing back rollouts of EVs, and rental firms are “paring purchases for their fleets.”
Still, even after the subsidy loss, automakers like Tesla, VW, Audi, Stellantis, and Mercedes-Benz have jumped in to compensate for it, at least for a little while.
Renault announced Monday its plan to delay the IPO of its EV startup Ampere, citing slow demand and difficult market conditions as the rationale. Bloomberg reported, too, that Volkswagen is doing the same with its EV business, with sources telling Bloomberg that VW is pushing back its IPO plans for its battery unit.
Still, the decline isn’t all that shocking: Germany’s passenger car market, VDA expects it to shrink by 1% to 2.82 million this year. But that’s part of a downward trend that has been happening since the pandemic, according to VDA.
According to VDA estimates, the global market should see a 2% growth to 77.4 million cars, compared to the 78.8 pre-pandemic. It forecasts the global market to grow by 2% to 77.4 million cars.
Germany is expected to produce 1.45 EVs this year, but much of that output will be exported, the report said. After China, Germany is the world’s second-largest passenger car BEV producer – but considering China produced 6.6 million BEVs in 2023 to Germany’s 1.2 million, that’s a pretty big gap. For comparison, the US produced 1.1 million EVs last year, according to data from VDA and S&P Global Mobility.
Electrek’s Take
The caveat here, too, is that VDA is a lobbyist group for German automakers, powered by stalwarts BMW, Volkswagen, and Mercedes, which are in a tight position as they struggle to adapt to EVs and keep pace with China’s BYD and Tesla. Plus Porsche’s CFO Lutz Meschke said that Europe may push back its 2035 ban on ICE vehicles due to slowing EV demand – so that’s not comforting news of what might be brewing.
Jobs – the good-paying kind with benefits and protections – are on the line too: Volkswagen said it would cut thousands of jobs in Germany to slash $11 billion in costs, and German EV suppliers are cutting jobs, with one of the country’s largest suppliers saying it might slash 20% of its workforce due to low demand.
But peaks and valleys are par for the course in the auto industry, and EVs certainly aren’t immune to this. Still, European automakers are drumming up new models to stay in the game. For its part, BMW says it is now investing $711 million (€650 million) to convert its main factory in Munich to exclusively produce electric vehicles by the end of 2027, in hopes of pushing its next-gen Neue Klasse EVs forward. The automaker says it hit its target of 15% share of battery-electric vehicles – and expects to sell half a million BEVs in 2024.
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On today’s informative episode of Quick Charge, we’ve got Honda engineers Jason Hwang and Emilio Sanchez to talk us through some of the things that make the GM Ultium-based Honda Prologue EV feel like a real Honda, and why that matters.
Jason and Emilio talk about some of the choices they made to make the Honda Prologue and Acura ZDX feel different from its GM-branded cousins, and explain why this was much more than a case of badge-engineering. Give it a listen, then let us know what you think of the Prologue and ZDX in the comments.
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Read more: All my favorite EVs, racecars, and robots from Electrify Expo Austin.
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The first EV charging hub funded by the Charging and Fueling Infrastructure (CFI) Program in the Eastern US is now online in Deerfield, Massachusetts.
The town installed the region’s first DC fast chargers (four ports), along with four Level 2 chargers, at 59 North Main Street in South Deerfield.
These new charging stations, funded with $2.46 million from the CFI program, are conveniently located near Interstate 91 in Franklin County, the most rural county in Massachusetts, which serves drivers from Connecticut up to the Canadian border.
The hub also features local and regional bus stops and designated bike lanes with secure onsite bike racks. The chargers are meant to cater to everyone: from local residents and visitors to municipal EVs and commercial vehicles that service the region’s businesses, like those in food and beverage manufacturing.
Gabe Klein, executive director of the Joint Office of Energy and Transportation, sees this as a model for future projects:
Multi-modal charging hubs in communities are key to giving more people the choice to ride and drive electric. The Town of Deerfield is showing leadership in building out convenient charging infrastructure that brings new transportation choices to rural and disadvantaged communities while supporting local commerce.
In recent years, Deerfield has experienced increased climate change-driven flooding from nearby rivers, including the Deerfield River, the Connecticut River, and the Bloody Brook. The project incorporates environmental engineering designed to mitigate and adapt to the effects of flooding and climate, including the installation of permeable asphalt and rain gardens, planting of native trees, grasses, and shrubs, and the creation of new greenspace in the center of Deerfield.
The Biden-Harris administration’s CFI Grant Program is expanding EV infrastructure nationwide. It offers grants for projects that complement and expand upon the initiatives of the NEVI program in urban, rural, and disadvantaged and low-income communities. So far, the CFI Grant Program has allocated over $1 billion to nearly 100 projects across the US, encouraging private investments and expanding the EV charging network to make EV ownership more practical and convenient.
Read more: The US reaches milestone of 200,000+ public EV charging ports
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Kia’s upcoming EV4 electric sedan was just spotted testing in the US for the first time. The low-cost EV is expected to make its big debut by the end of the year. Here’s a look at the new model.
The EV4 will round out Kia’s new “EVs for all” master plan launched last year. Kia showcased three new models, the EV3, EV4, and EV5, during its first annual EV Day in October 2023.
During the event, Kia outlined its new global strategy to “lead and accelerate the EV revolution” with a wide range of models priced from $30,000 to $80,000.
Kia plans to rapidly expand its lineup with a series of smaller, lower-priced models. It launched the EV9, its first three-row electric SUV, which is already proving to be a hot seller in the US. Starting at under $55,000, the EV9 is still a great deal compared to others in its class, but Kia plans to go even lower.
The EV3 and EV4 are expected to be among the most affordable electric vehicles when they arrive in the US.
Kia’s new EV4 is now testing in the US
Ahead of its official debut, Kia’s new EV4 sedan was recently caught driving on US streets for the first time.
The latest image from KindelAuto doesn’t reveal much more than what’s been shown in the past, but the fact that it’s now testing in the US is significant.
Kia’s EV3 is already on sale in Korea, starting at around $30,000 (42.08 million won). Earlier this week, the company said its new compact SUV is now available across Europe, starting at around $38,000 (36,000 euros) with a “segment-leading range” of up to 375 miles (WLTP).
Next up will be the EV4. Kia is expected to officially reveal the new EV by the end of the year, with deliveries starting in 2025. It could be as soon as next week at the 2024 LA Auto Show.
The interior will feature Kia’s advanced new ccNC infotainment system with dual 12.3″ navigation and driver display screens. An otherwise minalimalistic design is expected inside.
Kia’s EV4 will also be available in a hatchback variant. Although the hatch is likely aimed at European buyers, it was also recently spotted testing in the US for the first time.
We will learn official prices closer to launch, but the EV4 is expected to start at around $35,000 to $40,000.
Kia is teasing five new vehicles for the US, at least one being a new EV, that will debut at the LA Auto Show next week. Will it be the EV3? EV4?
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