Electric transportation in Germany: Where We Really Stand and Why the Transition Is Stalling

Europe-wide, there is also room for improvement: While approximately 13.5 percent of newly registered passenger cars in Germany had electric powertrains in 2024, Norway significantly outpaced this figure in the same year with a share of 87.9 percent. Sweden also achieved a significantly higher figure of 34.9 percent [5]. In Southeast Europe, however, the market penetration of battery-electric cars is lower, standing at just 7 percent in Hungary in 2024, 6.4 percent in Greece, and a comparatively low 1.8 percent in Croatia. This illustrates that Germany ranks in the middle of the pack in Europe when it comes to electric transportation. Across the entire EU, the share of electric cars among new registrations stood at 13.6 percent in 2024. Compared to 2014, this represents an increase of 13.3 percentage points [5].

At the same time, the technological and infrastructural conditions have improved. The number of public charging stations in Germany rose to around 180,000 by 2025 [6], and the average range of vehicles was 425 kilometers in 2024 [7]. Technologically, electric transportation is thus more suitable for everyday use than it was just a few years ago.

In 2024, however, there was a temporary decline in new vehicle registrations both in Germany and across Europe. Among the reasons for this were the expiration of government purchase subsidies, high acquisition costs, rising electricity prices, comparatively low fuel prices, a still inadequate charging infrastructure, and weak overall economic performance [8]. Nevertheless, current figures show that new registrations in Germany and across Europe are on the rise again [9]. Market dynamics are thus responding sensitively to political and economic conditions.

Electric transportation is a divisive topic. While supporters see it as a cornerstone of future mobility, critics continue to have concerns about safety, range, and purchase costs.

A data-driven analysis puts many of these concerns into perspective. In 2024, the average range of electric vehicles was 425 kilometers [7], which covers the majority of everyday mobility needs. Top-of-the-line models have a usable battery capacity of at least 80 kWh, while mid-range vehicles typically have between 45 kWh and 75 kWh. Although the actual range achievable depends largely on individual driving behavior and is usually slightly below the specified maximum values in practice [8], technological developments point to further improvements. Manufacturers are projecting a range of over 1,000 kilometers in the future, which is expected to be made possible by the use of solid-state batteries [8].

According to current research, the fire risk is also no higher than that of internal combustion engines. In fact, current research findings suggest a tendency toward lower frequency, as technological advancements in new battery types contribute to risk minimization. Lithium iron phosphate batteries and sodium-ion batteries are increasingly being used, which, due to their chemical composition, exhibit lower susceptibility to fire [8].

Another topic frequently discussed in public discourse is the sustainability of electric vehicles. To objectively assess this claim, it is crucial to consider the overall environmental impact across the entire life cycle of the vehicles—from manufacturing through use to disposal.

The production of an electric vehicle, particularly its battery, is currently more energy-intensive than the manufacturing of a combustion-engine vehicle. Depending on production conditions, greenhouse gas emissions during the manufacturing phase can be 60–130 percent higher. During the usage phase, however, significantly fewer greenhouse gas emissions are generated. Taking into account an increasingly renewable electricity mix, battery-electric vehicles have a greenhouse gas footprint that is 40 to 50 percent lower than that of comparable internal combustion engine vehicles [8]. Furthermore, in a largely decarbonized society, the greenhouse gas potential per kilometer for a passenger car would decrease by 96 percent by 2050 compared to 2020, while other environmental impacts such as acidification or particulate matter pollution would decline by only 40–60 percent [10].

Electric transportation is thus not an emission-free technology, but one with significantly lower emissions, particularly in the context of an ongoing energy transition. However, this does not apply without exception, as particularly heavy or inefficient electric vehicles with very large batteries currently have a greenhouse gas footprint that is only marginally better than that of a conventionally powered internal combustion engine [8].

Furthermore, electric vehicles open up additional potentials that go beyond their mere mobility function. As mobile energy storage units, they can be actively integrated into the energy system. This is made possible by so-called bidirectional charging, i.e., the ability not only to draw electricity but also to feed it back into the grid [8]. For vehicle owners, this can result in economic benefits, such as reduced charging costs or additional revenue from feeding electricity back into the grid. At the same time, calculations suggest that widespread use of this technology could also benefit the electricity system as a whole [8].

For decades, Germany’s automotive industry benefited from its technological excellence in the field of internal combustion engines. However, this strength also led to structural inertia, resulting in a comparatively late strategic transition to electric transportation. Politicians and industry clung to the internal combustion engine for a long time [11], which made it difficult to enter the international competition for a leading position in electric transportation in a timely manner and led to a competitive lag in the market. High costs, bureaucratic hurdles, and a lack of agility in implementing innovations exacerbated this competitive lag [11]. In contrast, the Chinese market invested early in battery technologies, production capacities, and digital integration, thereby securing a leading position in global competition [11].

Chinese manufacturers, in particular, hold a dominant position in the field of electric transportation. This is evidenced, for example, by the strong growth of many young manufacturers over the past year. Chinese manufacturers grew by a total of around 21 percent, continuing to outperform European and North American manufacturers. The domestic market plays a particularly crucial role for Chinese manufacturers, though there is also a continuous improvement in exports and the first relocations of production facilities outside of China. China’s most important export markets are South America and Europe, while exports to North America play virtually no role anymore. In contrast, North American automakers, particularly led by Tesla, are showing declining electrification figures [9].

The current situation is not the result of a single oversight, but rather the interplay of multiple factors from the economic, political, industrial, and social spheres.

Economic factors can be identified: Electric vehicles remain expensive to purchase. While many costs are offset over the vehicle’s lifespan, purchasing decisions are heavily influenced by the initial price. Added to this is the prevailing uncertainty regarding government grant initiatives, as well as fluctuating electricity prices, which influence demand.

Structural factors are also contributing to a slowdown in electric transportation. The long-standing focus on the internal combustion engine meant that value chains, expertise, and business models in the German market remained heavily oriented toward existing technologies. This delayed the necessary shift in industrial policy toward battery-electric powertrains. At the same time, the Asian market in particular was able to secure technological and production advantages early on.

These largely negative impulses from politics and industry also gave rise to societal obstacles. Public reservations regarding poor range, charging infrastructure, or sustainability have shaped the public perception of electric transportation. Even though many of these assumptions can now be put into perspective, they continue to influence consumer behavior and contribute to hesitation in purchasing decisions.

Equally relevant is the area of political framework conditions. Periods of limited planning certainty and inconsistent signals due to temporary uncertainty regarding funding security have weakened the public perception of electric transportation and confidence in the long-term reliability of the political strategy, leading to a certain degree of skepticism among consumers.

The comparatively slow progress of electric transportation in Germany is thus a reflection of a complex transformation phase. Market mechanisms, industrial policy decisions, societal perceptions, and political framework conditions are all intertwined in this process. To strengthen and secure Germany’s technological sovereignty, the overarching concept of the German Federal Ministry of Research, Technology and Space (BMFTR) was developed, which aims to establish a sustainable, competitive, and technologically sovereign battery value chain [12].