German Automakers' 2023 Electric Vehicle Production and Challenges Ahead

TapTechNews June 12th news, German automakers produced approximately 1.27 million pure electric vehicles and plug-in hybrid electric vehicles in 2023, ranking second in the world only after China.

The German Automobile Industry Association (VDA) stated that a total of 995,000 pure electric vehicles rolled off the production line in Germany in 2023. Currently, China dominates the global electric vehicle production, but most of the cars are only sold domestically. In contrast, 76% of the electric vehicles in Germany are sold overseas. In addition, the United States ranks third in the world.

As the birthplace of well-known automakers such as Volkswagen, BMW, and Mercedes-Benz, Germany unsurprisingly becomes the leader in electric vehicle production in Europe, with its production being more than the sum of that of the second-ranked Spain (256,000 vehicles) and the third-ranked France (225,000 vehicles).

DW in Germany reported last December that the German Federal Transport Authority estimates that by January 1, 2030, about 10 million electric vehicles will be registered in Germany. According to the existing vehicle ownership, this will mean that the market share of electric vehicles will reach 20% to 25%.

However, the outlook for electric vehicle manufacturing in Germany in 2024 is not completely optimistic. The German government's original electric vehicle subsidy plan, which was supposed to last until the end of 2024, was suddenly shelved after the 2024 budget revision. The German Constitutional Court led to a 60 billion euros (TapTechNews note: currently about 468.001 billion Chinese yuan) gap in the national budget, forcing the government to cancel multiple projects.

Electrek stated that German automakers also face complexities in software development and supply chain, resulting in their lagging behind Tesla and Chinese original equipment manufacturers (OEMs) in electric vehicle technology and efficient supply chain. In addition, German automakers often need to collaborate with US and East Asian companies to meet their battery needs, which leads to dependency issues and a slowed pace of catching up in battery technology R & D.