Tesla and Opel have unfortunately taken a hit in the bustling electric vehicle market.
Last year saw a challenging season for the German electric vehicle market. Data from the Federal Motor Transport Authority (KBA) revealed some brands that suffered significantly, such as Tesla and Opel. On the flip side, other German manufacturers managed to increase their market share.
The registration figures for battery-electric vehicles (BEVs) in Germany plummeted by 27% to approximately 381,000 in 2024. A major factor contributing to this decline was the elimination of the state purchase premium.
The Most Impacted Brands
No other brand was impacted as much as Tesla, pioneer of electric vehicles. New registrations dropped by over 26,000 to around 38,000, resulting in a market share of 9.9%. Despite leading the market in 2022, Tesla slipped to third place in the German BEV market.
Experts suggest several reasons for Tesla's weakness, including a tarnished image that also affects Elon Musk, the company's founder, and his political engagement. Musk openly supports the future US president, Donald Trump.
Opel also experienced a significant setback, with registrations falling from about 28,000 to less than 8,000, yielding a market share of just 2.0%. The company attributed the decline to an abrupt halt in funding, which affected lower-priced cars like the Corsa Electric more than costlier models. The Grandland's battery version was not available until a model update. Fiat and Hyundai also suffered registration losses.
The Brands That Bucked the Trend
Some brands, like BMW, managed to buck the downward trend, with registrations climbing by over 1,600 to more than 40,000, enabling the Munich-based company to overtake Tesla and secure second place, with an 11.1% market share.
Skoda, Seat, Volvo, and Porsche also saw an increase in registrations and market shares, sometimes substantially. Volvo recorded the most significant increase, with over 5,000 BEVs, despite the total number still falling below 14,000.
The Performance of Major German Manufacturers
The picture for German heavyweights like Volkswagen and Mercedes-Benz was mixed. While Volkswagen's market share increased from 13.5% to 16.3% and it held on to its leading position, registrations dropped by 8,500 to 62,000. Despite the total market shrinking, Volkswagen managed to increase its share. Mercede's market share increased from 7% to 8.9% as well, even though registrations dropped by 2,700 to 34,000.
However, Audi's performance deteriorated significantly, with registrations falling by 8,800 to 22,000, translating into a slight decrease in market share to 5.7%. This led Audi to slide behind its corporate sibling, Skoda, which improved to 6.6%.
Overall, Volkswagen Group's market share increased by 7.2% to 35.4%, despite a drop in total registrations by 13,000 to 135,000.
Insights
The decline in electric vehicle sales in Germany in 2024 can be attributed to factors such as the loss of subsidies, high prices, inadequate charging infrastructure, image issues, and changing consumer preferences. Some car manufacturers, like Tesla and Opel, experienced significant registration losses, while others, like Volkswagen and BMW, managed to maintain or grow their market share. The overall market dynamics and consumer preferences are shifting, with some opting for alternatives like hybrids and plug-in hybrids, leading to growth in their registrations.
BMW's registrations for battery-electric vehicles increased significantly, allowing the company to overtake Tesla and secure the second place in the German BEV market in 2024. Despite a 27% decrease in registration figures for BEVs overall, BMW managed to boost its registrations by over 1,600, resulting in an 11.1% market share.
