Demand for electric cars at a high level!

Published on: June 3, 2021 / Update from: June 3, 2021 - Author: Konrad Wolfenstein

Production of electric cars is picking up speed

Around one in five cars that rolled off the assembly line in Germany last March was an electric car. As the graphic based on data from the Association of the Automotive Industry (VDA) shows, the share of electric cars in production volume has recently increased significantly. In March 2019 it was only 3.3 percent with around 15,000 electric cars. The graphic also shows that car production in Germany has recovered significantly overall after the slump in 2020. However, in March 2021 it is still around 16 percent below the total production volume in March 2019.

One reason for the trend of increasing production of electric cars is likely to be increased demand from customers. These currently benefit from purchase bonuses granted by the federal government and the manufacturers. The program is so popular that, according to the Federal Office of Economics and Export Control, there have been repeated delays in processing applications. As part of the economic stimulus program due to the Corona crisis, the federal share of the environmental bonus was temporarily doubled until the end of 2021. On November 17th It was decided at the “Auto Summit”, a top meeting from politics and business, that the so-called innovation bonus would be extended until the end of 2025. The demand for electric cars could therefore remain at a high level.

Production of e-cars picks up speed

Around one in five cars that rolled off the production line in Germany last March was an e-car. As the chart based on data from the German Association of the Automotive Industry (VDA) shows, the share of electric cars in production volume has recently increased significantly. As recently as March 2019, it stood at just 3.3 percent, with around 15,000 e-cars. The chart also shows that overall passenger car production in Germany has recovered significantly following the slump in 2020. However, in March 2021, it is still around 16 percent below the total production volume in March 2019.

One reason for the trend of rising e-car production is likely to be increased demand on the customer side. These currently benefit from purchase bonuses granted by the federal government and the manufacturers. The program is so popular that, according to information from the Federal Office of Economics and Export Control, there have been repeated delays in processing applications. As part of the economic stimulus package due to the Corona crisis, the federal share of the environmental bonus was doubled for a limited period until the end of 2021. On Nov. 17, at the “Auto Summit,” a top-level roundtable of Politicians and business leaders, it was decided that the so-called innovation bonus would be extended until the end of 2025. Demand for e-cars could therefore remain at a high level.

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