Realities of the Market

The article delves into the significant drop in plug-in hybrid vehicle sales following the end of German subsidies in 2022, with sales falling by over 50%. Despite this decline, hybrid car registrations overall saw a slight increase. The impending end of subsidies for battery electric vehicles (BEVs) in December 2023 raises questions about their future sales performance, with a notable drop already observed in September 2023. The article explores the role of gasoline and diesel engines, which still dominate the market due to price sensitivity among buyers. It highlights the need for a reduction in BEV prices to achieve long-term market stability and support the transport transition. The article also addresses the increasing CO2 emissions from transport, despite the presence of plug-in hybrid and battery electric vehicles. The year 2023 is identified as a critical period for BEV expansion in Germany, as the technology must now prove its worth without subsidies. Manufacturers are aware of the challenge but their specific strategies remain uncertain. The article offers a detailed analysis of these market dynamics, providing valuable insights for professionals in the automotive industry.