Gearing Up for Bigger Savings on Electric Vehicles - Thanks to Government Motivation and Climate Goals
Increased savings on electric vehicles – stemming from CO2 objectives - Reduced prices on electric vehicles, driven by carbon emissions objectives
Get ready to save more on electric vehicles! Recent research by industry expert Ferdinand Dudenhöffer reveals that electric cars saw an average discount of 16.7% in April, which is 1.8 percentage points more than in March and 3% higher than the start of the year. That's over 1,000 euros off a typical model!
"The bar for bigger discounts on electric vehicles has been lowered in April," says Dudenhöffer, who analyzed the online prices of the 20 most popular electric vehicles in Germany. As he predicts, bigger discounts could be on the horizon in the coming months.
Two primary reasons for this trend are:
- Government Motivation: To help meet its climate goals and as part of its strategy to sell more electric vehicles, the German government might soon roll out enhanced incentives for electric vehicle (EV) purchases. These incentives may include financial perks for both buyers and automakers selling EVs, plug-in hybrids, and extended-range electric vehicles. Providing such incentives is crucial as they can stimulate demand for EVs, a growth area that has been lagging behind for some manufacturers like Ford[4].
- EU's Climate Targets: The European Union sets tough emissions targets for new cars to reduce carbon emissions. By increasing their production and sales of low-emission vehicles, including electric vehicles, automakers can help meet these stringent goals. Failure to meet these targets may result in steep penalties for manufacturers. By offering discounts and promotional programs through dealerships, automakers can drive market momentum while complying with these environmental requirements[4].
As for cars with internal combustion engines and plug-in hybrids, their discounts dipped slightly in April. Although they've slightly increased since January, they've done so at a slower pace compared to electric vehicles. This has narrowed the price gap between conventional and plug-in hybrid vehicles, which is now at its smallest difference since the conclusion of the state environmental bonus[2].
Expert Dudenhöffer maintains that electric mobility is on the brink of a resurgence, largely fueled by more attractive prices.
In the first quarter of the year, electric vehicle registrations in Germany boomed once again, a stark contrast to last year when sales crashed after the end of government support. Local manufacturers have been particularly successful in the electric vehicle space[2].
- Government Incentives
- Ferdinand Dudenhöffer
- Car
- Discounts
- Electric vehicle
- Bochum
- Climate goals
- Germany
- European Union
- Automakers
- Financial incentives
- Ferdinand Dudenhöffer, an industry expert, reports that electric cars in Germany saw an average discount of 16.7% in April, with a typical model saving over 1,000 euros.
- Dudenhöffer predicts bigger discounts on electric vehicles in the coming months, citing two primary reasons.
- The first reason is government motivation to meet its climate goals, which may involve enhanced incentives for electric vehicle purchases.
- The second reason is the EU's tough emissions targets for new cars, which encourage automakers to produce and sell low-emission vehicles like electric vehicles.
- While discounts for cars with internal combustion engines and plug-in hybrids dipped slightly in April, they have not seen the same level of growth as electric vehicles.
- This has narrowed the price gap between conventional and plug-in hybrid vehicles, indicating a shift towards electric mobility.
- In the first quarter of the year, electric vehicle registrations in Germany surged, defying last year's sales slump following the end of government support.
- Local manufacturers have been particularly successful in the electric vehicle market, adding to the resurgence of electric mobility, largely due to more attractive prices.
