German Auto Industry Downgrades EV Sales Forecast, EU Votes on Anti-Subsidy Tax on Chinese EVs
TapTechNews October 6th news, according to Reuters, the German Association of the Automotive Industry (VDA) downgraded the annual electric vehicle sales forecast on Friday local time, after previous data showed that the sales of electric vehicles in the first nine months decreased by 20% year-on-year.
The VDA currently expects that the sales of electric vehicles and plug-in hybrid vehicles will decline by 21% to 551,000 units, compared with the previous forecast of a 17% decrease to 578,000 units.
The main reason for the decline is that the decline in the sales of pure electric vehicles is higher than expected. Due to the sudden cancellation of the corporate car purchase subsidy by the German government last year, and the relatively high base in the same period last year, the sales slowdown this year is more obvious. Specifically for pure electric vehicles, the VDA expects the annual sales to decrease by 29%, higher than the previous forecast of 25%.
In Europe, the demand for electric vehicles remains sluggish. Consumers are expecting cheaper models to come on the market, and the construction progress of charging infrastructure is also behind schedule.
According to the prediction of the German Federal Motor Transport Authority KBA, as of 2024, the penetration rate of electric vehicles in Germany is still relatively low. Among them, pure electric vehicles account for about 3% of the total number of vehicles, and plug-in hybrid vehicles are close to 2%.
And according to a previous report by TapTechNews, the latest opinion poll results released by the largest transport association in Germany, the Allgemeiner Deutscher Automobil-Club, on the 4th local time showed that the cost performance of Chinese brand cars is very attractive to German consumers. If it is a pure electric vehicle, as many as 80% of the respondents showed strong interest.
The EU held a vote on whether to levy a five-year anti-subsidy tax on Chinese electric vehicles. The statement released by the European Commission shows that the proposal of the European Commission to levy tariffs on imported pure electric vehicles from China has obtained the necessary support of EU member states.
German Federal Finance Minister Christian Lindner warned on the same day that trade policy disputes may intensify. He pointed out that although the vote has been carried out, the European Commission led by Ursula von der Leyen should not trigger trade conflicts - We need to find a solution through negotiation.
The German business community also called for avoiding additional taxation through negotiation. The Federation of German Industries, the German Association of the Automotive Industry and several German car manufacturers warned that additional taxation would have an adverse impact on the German economy.