Struggling German Automotive Industry Faces Declining Sales, Particularly for Electric Cars

The German automotive industry is facing a significant decline in sales, especially for electric cars. The lack of new orders has led to a 'free fall' in the mood within the industry, according to the Ifo Institute.

The VW works council is opposing the company's austerity measures, rejecting plant closures and job guarantee cuts. The Federal Motor Transport Authority and consulting firm EY do not see a sustainable recovery in the new car market.

In response, the German government is planning to introduce tax incentives to boost the sales of electric cars as company cars. These measures are part of a 'growth initiative' aimed at offsetting the decline in demand for electric cars after the discontinuation of the environmental bonus due to budget constraints.

The government hopes that these tax incentives will stimulate demand, as company cars are also important for the used car market. However, critics argue that the new measures primarily benefit luxury company cars.

Despite the challenges, the government's goal of having 15 million electric cars on German roads by 2030 remains ambitious.