German federal government increases funding volume for electric cars

The German government is aiming for the ambitious goal of having at least 15 million electric vehicles on German roads by 2030. But given the current figures, this seems unrealistic. In the first half of 2023, significantly more cars were sold in Germany than in the same period last year. According to the Federal Motor Transport Authority (KBA), a good 1.4 million new vehicles were registered from January to June, an increase of 12.8 percent compared to the first six months of 2022. 

Of these new registrations, just over 220,000 were electric cars, a year-on-year increase of 31.7 percent - no other powertrain type saw such growth. Despite this positive trend, e-cars still account for a modest 15.8 percent of all new registrations (source KBA), making it doubtful that the government's target of 15 million electric vehicles by 2030 will be achieved.

An increase in the subsidy amount for electric vehicles will provide a tailwind. The Ministry of Economics confirmed the increase of the environmental bonus by a further 400 million euros at the request of the Berlin-based "Tagesspiegel". In addition, currently falling prices of some car manufacturers and the progressive expansion of the charging infrastructure could spur the upward trend.