7 reasons why electric vehicles are so popular in Germany
Innovation, government subsidies and great car insurance - why Germans buy electric cars in record numbers
The global automobile industry has been hard by the Covid-19 pandemic. Germany is no exception to this and many German car manufacturers are starting to reduce their number of staff or reorganize departments to compensate for revenue losses. However, there is a massive silver lining: German consumers are buying electric cars at record numbers.
1. Environmental conscience
There has been a huge shift in recent years towards much more environmentally conscious consumption in Germany. This includes the purchase of cars. While the average age of cars on German roads is just under 10 years, the number of new, more eco-friendly cars is rising steadily. The vast majority of Germans think about environmental aspects when buying a new car: A recent survey shows that 79% of Germans take environmental concerns into account when deciding on a new car.
2. Low threshold for expensive cars
Electric vehicles tend to be more expensive than their non-electric counterparts. In addition to that, they require expensive batteries and a loading station. Most owners also purchase an acoustic vehicle alert system, so the electric vehicle can be heard in loud traffic (mainly by pedestrians and cyclists). All of this adds up financially. Germans don’t mind, because they already spend a large amount of money on new cars. The average new car purchased by Germans costs $40,000 which is a lot. However, the jump to even the higher-end electric cars made by Mercedes or BMW isn’t all that big. The BMW i3 for example starts at $45,000.
3. Love for innovation
Innovation plays a big role in German society. Germans are used to big manufacturing companies coming out with new types of cars and features - and they readily embrace changes. Germany itself is known all over the world for its top-notch research facilities and innovative engineering. This extends to local consumers who love to invest in new technologies and digital trends. The TecDax, the stock index which tracks the performance of the top 30 tech companies in Germany is a popular investment vehicle for German investors.
4. Strong government incentives
The German government has passed a number of stimulus packages in recent years aimed at encouraging consumers to buy more environmentally friendly cars. The first big package was announced in 2009 when the government started the so-called “scrappage scheme”. The benefits included bonus cash payments to consumers who traded their older cars in for lower emission vehicles. Due to the emergence of Covid-19 and the devastating effects on the automotive industry, the German government launched another stimulus package in June 2020: Buyers of low emission and electric vehicles can receive cash bonuses of up to $10,700.
5. Great car insurance
Typically, the biggest concern of electric car owners is damage and maintenance. Consumers are keen to know that they have car insurance which will cover their electric vehicles in case of accidents or damage caused to the car due to vandalism or break-ins. Germany has a great car insurance system that insures vehicle owners against all possible damages. The best insurance packages can be found on big online portals which aim to explain exactly what is covered and what isn’t. This way even owners of high-end electric cars have peace of mind knowing they are covered should something happen to their vehicles.
6. Abundance of patience
Electric vehicles are in such high demand in Germany right now, that many dealerships have long wait times. It is currently not unusual for consumers to have to wait six or seven months for delivery of their new vehicles. This doesn’t deter Germans, however. They are quite happy to wait for their newly purchased vehicles. Germans even have their own word for it: Vorfreude, which describes a sort of happiness that comes with waiting for a long-anticipated event. Patience is a virtue in German culture, so owners of electric vehicles patiently wait in line until their car is ready.
7. Roadtrip obsession
The number of Germans taking road trips is steadily increasing - not least because of Covid-19 and closed borders. Germans no longer feel they have to go as far as Italy to enjoy their vacation. Instead, they travel to the North Sea or Ostsee (the Baltic sea) and largely stay inside their own country. For electric car owners, this is a particularly beneficial way to travel, since they can easily preplan their trips and make sure there are charging stations for their vehicles at every stop. Also, there are plenty of charging stations inside of Germany - Berlin alone currently has 641 stations.
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