The Germany automotive high-performance electric vehicles market is anticipated to register a CAGR of about 32% during the forecast period, 2020 - 2025.
- The growing awareness for concerns in vehicle emissions like that of CO2, lower operating and maintenance cost along with an increase in Government and environmental agency’s initiative to encourage the use of electric vehicles would help to drive the growth of high-performance electric vehicles market in the region.
- An electric high-performance vehicle (EHPV) is propelled by electricity and is equipped with advance electric vehicle power train components and Li-ion batteries with high energy density.
- Electric high-performance vehicles can be differentiated from other EVs on aspects that include a longer range of distance i.e. over 90 miles in a single charge, which is very high compared to other commercially available EVs. EHPVs also have high acceleration and can attain the speed of over 90 miles per hour with fast 0 to 60 miles per hour acceleration unlike that of EV which can range at speeds varying from 40-65 miles per hour.
Key Market Trends
Government Participation will Drive the Market.
Government and German automakers are pushing hard to make Germany the largest market and producer in Europe. As they are working collectively to support the mass acceptance of electric vehicles in the country. In 2019, an agreement was signed between the government and German automotive industry majors for encouraging the mass production of electric vehicles in the country.
Along with that, the agreement will also increase the consumer subsidies for an electric car, buyers of cars priced less than 40,000 Euro will get about 6,000 Euro as compared to 4,000 Euro previously. Similarly for any plug-in hybrids in this price range will be provided with a subsidy of 4,500 Euro, which is 3,000 Euro previously.
Whereas, the Volkswagen group, has plans to introduce around 70 full-electric models by 2028globally. The group plans to invest around Euro 60 billion on the development including areas of hybridization, electric mobility, and digitalization between 2020 and 2024. The automakers have already launched its first of a new generation of mass-market battery-powered car ID3.
Other major players in the market have also announced their plan, for instance,
Daimler AG is planning to bring more than ten different electric vehicles by 2022. In which they will be electrifying the entire Mercedes‑Benz portfolio. The company will invest around ten billion euros in the development of its EQ vehicle portfolio. For 2020 the company has ambitious plans to sell smart models with battery-electric drive in Europe and the United States.
Similarly, in 2019, Ford launches electric variants of its Kuga and Puma SUVs and the Mondeo sedan. The automotive major has plans to launch nine other electric vehicles by 2024 in Europe, which will include electric Mustang SUV Mach-E. The company has also partnered with leading energy suppliers across Europe for home-charging wall box installation services.
COVID-19 will Hinder the Market Growth
The automotive industry is the backbone of the country’s economy and due to the pandemic automakers have to shut their factories for months, car dealers had to close during the shutdown, customers have no interest in buying a new car as they fear of unemployment and income cuts.
According to Destatis, the German economy shrank by 2.2% in the first quarter of 2020 and even worst is being expected in the second quarter. After the shutdown, the country is slowly getting towards normalcy and the government has also announced its USD 147 billion stimulus package for the recovery of the economy.
Whereas many local and global players have their plan for the second half of 2020 which will provide a major push in the market
For instance, Audi E-tron Sportback is set to join its sibling standard E-tron by mid-2020, Skoda’s first electric car isn’t expected to go on sale by 2021, but its production version should be launched in 2020. Ford much awaited Mustang Mach-Escheduled for the third quarter of 2020.
Similarly In 2018, BMW has showcased its all-electric SUV iX3 in Auto China 2018, Company will be starting the production of this electric SUV in China and then exported globally by 2020. The iX3 to be first available for the Germany market with 300 hp and range around 160-200 miles.
The Germany automotive high-performance electric vehicles market is moderately consolidated and highly competitive with the presence of players such as BMW Group, Daimler AG, and Volkswagen AG amongst others.Companies are launching new models and investing in RandD projects to provide best technology to the electric vehicle customers. For instance,
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