EV sales in Germany will surpass California’s for the first time this year, as government incentives push Europe’s largest car market ahead of Tesla’s home state.
Buyers in Germany landed 98,370 fully electric cars in the first nine months of 2020, about a third more than those living in California, according to a report by Schmidt Automotive Research. Germany outgrowing California is a good thing for the likes of VW, Daimler and BMW.
Last month, EV sales in Germany went up by 523% to 28,965 units, with Tesla sales spiking 500% to 1,680 units for a 0.6% market share.
Thanks to state-funded subsidies rising to as much as 9,000 euros ($10,900) per BEV (battery electric vehicle), Germany’s electric car fleet now spans twice the size of Norway’s, although the latter is still the country with the highest per-capita EV penetration, as reported by Autonews Europe.
Taking the fight to Tesla is vital for the German car industry, especially since VW, Daimler and BMW together aren’t even valued at half of what Tesla is now worth. The disparity is almost comical. On top of that, Tesla is also building a factory near Berlin, bringing the fight to its rivals on their home turf.
All that aside, Europe is now focused on phasing out gasoline and diesel-powered cars, with the UK set to ban such new models before the end of this decade. California meanwhile will phase out sales of new gasoline-powered cars by 2035, according to Governor Gavin Newsom.