Automotive industry under pressure: Association calls for a reset for electric mobility

The German automobile manufacturers face the challenge of meeting their CO₂ fleet limit values. To avoid penalties in the EU, the sales figures of pure electric vehicles would have to increase significantly this year.

In the production of electric vehicles, significantly fewer workers are needed compared to the production of combustion vehicles - stock image of BMW production. | Photo: BMW
In the production of electric vehicles, significantly fewer workers are needed compared to the production of combustion vehicles - stock image of BMW production. | Photo: BMW

The German Association of the Automotive Industry (VDA) expects an increase in new registrations of electric cars by 53 percent compared to 2024, as made clear at the annual kick-off press conference in Berlin. The association anticipates a total of 873,000 newly registered electric vehicles, 666,000 of which are purely battery models.

However, the conditions are challenging. Last year, sales of electric cars dropped by around 25 percent, with only 380,600 vehicles newly hitting the roads. The VDA thus sees a need for political action, especially in the expansion of charging infrastructure. Despite an increase in charging points, there continue to be regional bottlenecks, which impair the everyday usability of electric vehicles.

Federal Government Plans New Incentives

The federal government is considering targeted support for electric cars produced in Germany. In an interview, Chancellor Olaf Scholz stated that such a regulation would require the approval of the European Commission, and a Europe-wide solution would be the best option in his view. The purchase of electric vehicles cannot be mandated; rather, the models offered must convince consumers. Scholz expressed optimism that new, more advanced, and affordable models could drive the growth of electromobility.

Uncertainty Due to Global Trade Conflicts

In addition to CO₂ regulations, other economic uncertainties are weighing on the automotive industry. The newly elected U.S. President Donald Trump has hinted at reviewing import tariffs on European cars. At the same time, the industry sees inadequate political frameworks to address these challenges.

VDA President Hildegard Müller emphasized that the year 2025 must be an economic turning point. The industry needs structural reforms, including less bureaucracy, lower energy prices, and reduced tax burdens.

Market remains below pre-crisis level

For the German market, the VDA expects around 2.8 million new registrations in 2025, which would correspond to the level of the previous year. This means the industry would remain significantly below the pre-crisis year of 2019, when a quarter more vehicles were sold.

The transformation to electromobility also has implications for the labor market. The VDA expects a further reduction of around 190,000 jobs by 2035, with 46,000 jobs already lost. The current economic conditions could further intensify this trend, warned the association.

Therefore, Müller called for stronger coordination of industrial policy at the European level. She advocated for an energy and capital market union as well as a common electricity market within the EU to secure the long-term competitiveness of the German automotive industry.

Source: VDA

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