Electric Vehicles helped German Car Sales Rebound in 2022

Automobile Business

After two years of sharp declines caused by the coronavirus pandemic, supply bottlenecks, and the official data showed that new car sales in Germany increased slightly in 2017. According to the federal transport authority KBA, 2.65 million vehicles were registered in Europe’s largest economy in 2022, an increase of 1.1% from the previous year.

While sales of gasoline-powered and diesel-powered automobiles declined by 11.2% and 9.9%, respectively, electric vehicle sales surged. Last year, 470,559 battery-powered vehicles were registered in Germany, an increase of 32.2%. These vehicles now account for 17.7% of new car sales in Germany.

After two years of declining sales, the business’s overall performance improved. The Covid-19 outbreak led to a 19% year-over-year decline in new registrations in 2020, followed by a further 10.1% decline in 2021. In 2022, nearly a million fewer cars were registered than in 2019.

The German auto market was saved from another drop by a revival in sales in the second half of last year, which was capped by a 38.1 percent increase in sales year-over-year in December. Reinhard Zirpel, president of the VDIK car importers’ federation, said that the strong finish meant that 2022 ended on a positive note.

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Last year, the auto industry was impacted by persistent shortages of key components, particularly semiconductors, which limited production in the flagship sector. The supply issues automobile manufacturers face appear to be decreasing at the beginning of 2023. The industry is still in a difficult position, but “supply of intermediate products is easing slightly.”

Despite this, the industry’s prospects remain uncertain as the European economy approaches recession. According to Peter Fuss, an analyst at EY, consumers’ declining purchasing power will limit sales this year.

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