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New car registrations in Germany are experiencing a significant upswing

In July, there was a notable rise in new car registrations, with one out of every five new cars being equipped with an electric drive. However, this surge in interest in electric cars may soon face a decline.

According to the Federal Motor Transport Authority (KBA), approximately 243,000 passenger cars were newly registered last month, marking an 18.1 percent increase compared to the previous year.

Commercial registrations saw the most substantial boost, rising by nearly 25 percent, while residential registrations experienced a 5.5 percent increase.

How long will the demand for electric cars continue to rise?

During the same period, Flensburg saw around 48,700 newly registered battery-electric vehicles (BEV), reflecting a notable 60 percent rise compared to the same month last year.

However, the consulting firm EY predicts that the electric car boom might come to an end soon as government support for commercial electric vehicle purchases is set to expire on September 1st. This could lead to a significant decline in demand from that point onwards.

Emissions unchanged

Interestingly, despite the increased adoption of electric vehicles, the average CO₂ emissions of all newly registered cars have not decreased. In the first six months of the current year, the average emissions stood at 121 grams per kilometre, approximately the same level as the corresponding period last year.

This lack of reduction in emissions can be attributed to a notable increase in new car registrations with average emissions ranging from 121 to 160 grams of CO₂ per kilometre, which rose by almost a quarter during the first half of the year.

Conversely, the number of new vehicles with emissions below 50 grams per kilometre fell by 1.7 percent over the same period.