New electric car registrations rise sharply in Germany in March

Registrations of new electric vehicles in Germany surged by 66.2% year-on-year in March amid soaring prices at the pump, the national motor transport authority said on Tuesday.

Some 71,000 electric vehicles were registered over the month, up from 43,000 in February.

The proportion of new electric registrations came in at 24% in March, up from 22% in February and well up from the 16.8% posted in March last year.

The surge in purchases came as oil prices have soared in recent weeks due to the Iran war, resulting in rising bills for motorists.

Consultancy firm EY said that new state subsidies of up to €6,000 ($6,930) per car were having an effect on electric vehicle registrations, which had posted the highest figure since the 87,000 units recorded in August 2023.

EY analyst Constantin Gall sees a possible market share of 25% for electric vehicles for the year as a whole, with the first quarter coming in at 22.8%.

"A large majority of new car purchasers are still deciding on a combustion engine, and nothing will change here for the present, despite high fuel prices, despite billions in state subsidies and despite new electric models with improved range and charging times," he said.

There were more than 294,000 new registrations in Germany in March, 16% more than in February. The figure for the first quarter was up 5.2% on the year.

But Gall noted that a weak economy, geopolitical crises and wars were depressing consumer sentiment.