26% of prospective car buyers are open to purchasing an electric vehicle and 23% a plug-in hybrid. However, only 12% rank electric cars as their top choice and just 8% plug-in hybrids. This highlights ongoing consumer hesitation towards transitioning to electric cars.
Nearly half of Germans think it is hard to understand the advantages of owning a pure electric car and perceptions around them remain largely unfavourable. Significant gaps exist in how consumers view electric vehicles compared to combustion cars, particularly in areas like purchase and running costs, reliability and safety, which are key factors in car-buying decisions. While the launch of affordable EVs may help ease cost concerns, other significant negative perceptions need to be addressed.
To bridge this gap and attract the mass market, brands can leverage current EV owners to advocate for their safety and reliability, helping change common perceptions. Additionally, focusing on the emotional aspects of car ownership, such as the sense of freedom they provide, and easing the transition through familiarity can make electric cars more appealing to a broader audience.
This report looks at the following areas:
- Car ownership by fuel type and plans to purchase a car, including new or used car purchase and timeline of purchase
- Preferred fuel type for planned car purchase, such as electric, hybrid and plug-in hybrid
- Consumers’ perception of different fuel types, including key attributes related to cost, safety and reliability
- Attitudes and behaviours towards electric and hybrid vehicles, including the social aspect of sustainability and openness towards Chinese car brands
To achieve widespread adoption of electric cars, brands need to address negative perceptions in key areas and focus on core car ownership values. Hybrid cars are a vital interim step towards electric mobility.
Venkatesh Modi, Research Analyst, Germany
Market Definitions
This report examines the German market for electric and hybrid cars.
The terms ‘vehicle’ and ‘car’ are used interchangeably throughout the report.
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EXECUTIVE SUMMARY
- What you need to know
- Opportunities
- Market size & forecast
- Outlook
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OPPORTUNITIES
- Tackle electric car misconceptions to boost appeal
- Few prospective buyers prioritise electric
- Graph 1: preferred fuel type for planned car purchase, 2024
- Address negative perceptions about electric cars to increase their appeal
- Leverage early adopters to champion electric cars
- Focus on the fundamental values of car ownership when promoting electric cars
- Showcase how electric cars align with, and can enhance, the core values of car ownership
- Generate appeal among mainstream electric car buyers
- Make change less daunting for mass-market buyers
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CONSUMER
- Car ownership and purchase plans
- Petrol cars continue to dominate German roads
- Hybrid and electric cars are more likely to be owned by those with multiple cars
- Graph 2: type of car personally owned, by repertoire of type of car personally owned, 2024
- Lower-income households show low hybrid and electric car ownership
- Graph 3: type of car personally owned, by net monthly household income, 2024
- Younger generations are more likely to own electric and hybrid cars…
- Graph 4: type of car personally owned, by generation, 2024
- …but also diesel cars
- Quicker recovery among consumers with healthy finances will support growth in electric and hybrid vehicles
- Graph 5: car purchase plans, 2023-24
- Younger Millennials are most likely to be prospective car buyers
- Graph 6: car purchase plans, by generation, 2024
- Income influences whether consumers choose a new or second-hand car
- Graph 7: planned car purchase – new or used, by net monthly household income, 2024
- Four in 10 prospective car buyers plan to purchase in the next year
- Graph 8: timeline for planned car purchase, 2024
- Preferred fuel type for next car purchase
- Hybrid cars are gaining popularity
- Graph 9: preferred fuel type for planned car purchase, 2024
- Few potential car buyers prefer electric and plug-in hybrids
- Car buyers across generations show consistent preference for electric and hybrid vehicles
- Graph 10: preferred fuel type for planned car purchase, by generation, 2024
- Preference for electric and hybrid cars is steady across income levels
- Graph 11: preferred fuel type for planned car purchase, by net monthly household income, 2024
- Urban dwellers are more open to electric and hybrid cars
- Graph 12: preferred fuel type for planned car purchase, by area, 2024
- Electric and plug-in hybrid cars are less popular among second-hand buyers
- Graph 13: preferred fuel type of next car purchase, by type of planned car purchase, 2024
- Perceptions of different fuel types
- Electric cars continue to raise concerns over safety and price
- Influence negative perceptions of electric cars
- Younger consumers have more-positive perceptions, but there is still room for improvement
- Graph 14: positive attributes associated with cars of different fuel types, by generation, 2024
- Electric cars are more likely to be associated with safety concerns
- Address safety concerns about electric cars
- Mercedes explains what happens during an electric car accident
- Germans are less likely to associate electric cars with reliability compared to other fuel types
- Turn current owners into reliability advocates
- Affordable electric car launches could shift the perception that EVs are expensive
- Attitudes and behaviours
- Nearly half of Germans perceive a lack of value in electric cars
- Persuade consumers of the value of electric cars
- Tackle the perception that electric cars limit freedom
- Volkswagen showcases the freedom offered by its electric ID.7
- Leverage sustainability as a symbol of social status
- Graph 15: agreement/disagreement with ‘owning cars with a combustion engine is becoming socially unacceptable’, by age, 2024
- Chinese car brands are leveraging innovation
- Graph 16: consumers who would consider purchasing a car from a Chinese brand, 2023-24
- Leapmotor urges consumers to take a leap forward
- Leveraging heritage can help German car brands stand out
- Graph 17: agreement/disagreement with ‘cars from a German brand are worth paying more for than cars from a foreign brand’, by age, 2024
- Mercedes emphasises that the feel of its cars remains unchanged even as the car industry evolves
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LAUNCH ACTIVITY AND INNOVATION
- Affordable electric cars set for 2025 launch
- Tesla launches new Model Y in Germany
- BMW showcases panoramic vision
- Hyundai introduces Ioniq 5 N with manual gear shifting simulation
- Opel launches ‘Electric All In’ package with supporting services for electric cars
- Digital advertising
- VW Group dominates digital ad spend, but Volvo seeks greater awareness
- Graph 18: digital ad spend for EVs, by advertiser, 12 months to February 2025
- Chinese brand BYD edges into the top 10 digital ad spenders
- Graph 19: digital ad spend for EVs, by brand, 12 months to February 2025
- Volvo leverages YouTube to build appeal
- Graph 20: digital ad spend of advertisers, by device & formats, 12 months to February 2025
- Volvo widely promotes it’s EV range
- Volvo’s safety focused social media ad achieved 47 million impressions
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MARKET
- Market drivers
- Consumer confidence is improving, but still a uncertain
- Graph 21: financial consumer confidence, 2022-25
- Rising inflation in the car market
- Graph 22: consumer price index, 2015-24
- German election creates added uncertainty
- Tighter CO2 fleet regulations could push manufacturers to boost electric car sales
- Germany’s public charging network continues to expand…
- Graph 23: number of charging points, by type, 2017-24
- …which is a positive sign for the electric car market
- Market size
- The German car market declined in 2024
- Graph 24: new passenger car registrations, 2020-24
- Electric and hybrid car market sees first decline after years of strong growth
- Graph 25: new electric and hybrid car registrations, 2020-24
- Market segmentation
- Hybrid cars continue to lead the hybrid and electric vehicle market
- Graph 26: market segmentation of electric and hybrid vehicles, by fuel type, 2019-24
- Hybrid cars continue to build share
- The popularity of SUVs in the electric and hybrid car market continues
- Graph 27: market segmentation of electric and hybrid vehicles, by body type, 2021-24
- SUVs remain in demand, while mini cars struggle
- Market forecast
- Electric and hybrid car market will grow steadily
- The market for electric and hybrid cars is expected to hit 1.7 million units by 2029
- Market share
- Volkswagen continues to lead the BEV market
- Graph 28: BEV market share, 2021-24
- Decline in BEV registrations impacts multiple brands
- German premium brands maintain top position in the hybrid market
- Graph 29: HEV and PHEV market share, 2021-24
- Mercedes maintains the top spot while BMW overtakes Audi to take second
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APPENDIX
- Report scope and definitions
- Market definition
- Generations
- Abbreviations
- Methodology – consumer research
- Consumer research methodology
- Correspondence analysis methodology
- A note on language
- Methodology – market size and forecast
- Forecast methodology
- Forecast methodology – fan chart
- Market size – volume
- Market forecast and prediction intervals – volume
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