The Registrations of hybrid vehicles in Germany attained a value of 527,864 Units in 2020
The indicator recorded a historical growth (CAGR) of 84% between 2017 to 2020, and is expected to grow by...
GlobalData projects the indicator to grow at a CAGR of...
Automotive industry in Germany.
The German hybrid and electric cars market remained at a growth trajectory in 2020. The market is expected to accelerate at higher growth rates during the forecast period as the adoption of hybrid and electric cars will continue to increase, driven by increasing affordability and the expansion of charging infrastructure. Demand in the hybrid and electric cars market remained resilient in 2020 in spite of the outbreak of the COVID‐19 pandemic, which resulted in lockdown measures and the recession of economic activity. Although new ICE car sales recorded an unprecedented drop amid weak consumer confidence and suppressed incomes, hybrid and electric car sales increased, beating expectations of a decline only minor to that of ICE car sales.
This sales growth is mainly attributed to stricter emission standards phased in by the EU in 2020. In detail, manufacturers sought to increase their sales of hybrid and electric cars, accelerating the roll‐out of new models to align with the new EU emission standards, which requires their sales of new cars to have an average emission of 95g CO2/km per car. Accordingly, manufacturers were incentivized to increase the supply of hybrid and electric cars, even reducing prices, in order to meet this threshold and avoid hefty fines.
New generous incentives introduced in 2020 boosted sales in the German market. Specifically, VAT on electric cars was reduced in the second half of the year, along with a 10‐year exemption on ownership taxes for vehicles registered until the end of 2020. In addition to this, purchase incentives were increased.
Hybrid and electric car adoption has been strongly increasing as their purchase prices have been decreasing in line with cost reductions made through advances in battery technology. Additionally, the continuous expansion of the charging infrastructure along with the increased range capacities of new offerings has also helped to recede consumers’ concerns over their utility. Germany also has the second-largest network of charging stations worldwide.
There is a lot of room for growth in the German market, as the share of the market in the total of new car sales is still small for its potential. The government subsidies on purchases and preferential tax treatment on hybrid and electric cars that will last until 2025 will support demand in the long‐term, with sales continuing at a strong double-digit rate trajectory.
The hybrid and electric cars market consist of the initial retail sale/registration of new electric and hybrid passenger cars. Passenger cars include saloons, hatchbacks, SUVs, 4x4s and other related vehicles. The hybrid cars segment refers to all types of hybrid electric cars such as plug‐in hybrid electric vehicles (PHEVs), Extended Range Electric Vehicles (EREVs) and standard Hybrid Electric Vehicles (HEVs). Other alternative fuel vehicles (e.g., LPG or Hydrogen fuel cell) are not included.
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