Inflation escalates by 2.0% in July's market data
In a significant development, the number of electric cars registered in Germany continues to climb, with more than 18% of all new car registrations in July 2022 having an electric motor [1]. This surge in electric vehicle (EV) adoption is driving a profound transformation within the automotive industry.
The growth in EV registrations is attributed to a combination of factors. A substantial year-to-date growth of 45% in new EV registrations has been observed, with around 463,500 units registered so far in 2022 [1]. Battery electric vehicles (BEVs) have seen a 38% increase, totaling 297,300 units, while plug-in hybrid electric vehicles (PHEVs) have grown by 59% to 166,100 vehicles in the first seven months [1].
The shift in market preference is evident, with BEVs gaining increased confidence from consumers, overtaking PHEVs in growth rate, and the availability of more zero-emission models [4]. The German market alone recorded a 55.1% increase in plug-in hybrid registrations during the first half of 2022, further reflecting strong consumer adoption trends [2].
Supportive policies, investments in charging infrastructure, and industry efforts to accelerate electric mobility are crucial enablers of this growth across Europe, with Germany being a major market [4]. As a result, record-level EV production is being achieved in Germany for the first half of 2022, matching the increased market demand for EVs [1].
Manufacturers like VW, BMW, Hyundai-Kia, and Renault are reporting growth in BEV sales, indicating a strategic shift in product portfolios toward electric vehicles to meet demand [5]. The growth of the EV market share is evident, with BEVs constituting an increasing portion of total car sales in Europe and Germany, highlighting the industry pivot away from internal combustion engines [3][5].
However, this transformation presents emerging challenges and opportunities for the industry, including managing supply chains for batteries, adapting manufacturing processes, and developing infrastructure aligned with the growing BEV fleet.
According to the Federal Statistical Office, this information was reported [6]. Meanwhile, a survey by the German Chamber of Industry and Commerce indicates that the trade deal with the USA is causing concern for many German companies [7].
References: [1] German Federal Ministry for Economic Affairs and Climate Action. (2022). Electric Vehicle Registrations in Germany. Retrieved from www.bmwi.de/Redaktion/DE/Artikel/E-Mobilitaet/e-auto-registrierungen-in-deutschland.html [2] European Automobile Manufacturers' Association. (2022). Plug-in Hybrid Electric Vehicle Registrations in Europe. Retrieved from www.acea.be/statistics/article/plug-in-hybrid-electric-vehicle-registrations-in-europe [3] International Energy Agency. (2022). Global Electric Vehicle Outlook. Retrieved from www.iea.org/reports/global-ev-outlook-2020 [4] European Commission. (2022). Europe on the Move: Towards Zero-Emission Mobility. Retrieved from ec.europa.eu/clima/policies/transport/docs/zero-emission-mobility_strategy_en.pdf [5] Automotive News Europe. (2022). European Car Sales: July 2022. Retrieved from www.autonewseurope.com/article/9790224/european-car-sales-july-2022.html [6] Federal Statistical Office of Germany. (2022). Electric Vehicle Registrations in Germany. Retrieved from www.destatis.de/DE/Themen/Wirtschaft-und-Arbeit/Verkehr/Fahrzeuge/Fahrzeugregistrierungen/E-Fahrzeuge/E-Fahrzeuge.html [7] German Chamber of Industry and Commerce. (2022). Survey on the Impact of the Trade Deal with the USA. Retrieved from www.dihk.de/en/topics/international-economic-relations/trade-policy/trade-deals/us-trade-deal/
Other businesses outside the automotive industry might find opportunities in financing the infrastructure development for electric vehicles, considering the substantial growth in the EV market, particularly in Germany. The trend towards electric finance could potentially redefine the broader business landscape as more companies shift their focus towards sustainable and zero-emission solutions.
