Rising energy costs threaten the future electric carGerman industry chiefs warned.
The rise in electricity prices as well as in the costs and availability of raw materials, the chronic shortage of spare parts, and the widespread decline in disposable income have a significant impact on the production and sale of cars.
If this trend continues, there is also concern that there will be an indirect impact on investors who lack incentives to build charging facilities, making electric cars less attractive – because they will be more practical – to run.
Until recently, electric vehicle ownership was gaining traction as the cost of gasoline rose. But since the recent hike in electricity prices – in Germany By about a third compared to last year – the price difference narrowed.
Electric car owners, whether they charge their cars at home or through contracts with charging operators, have seen prices rise by 10% or more. Further price hikes are expected, due to the fact that the price of electricity is linked to the price of gas, which has become more scarce since then Russia has stopped gas supplies to Germany Almost two weeks ago.
Allego, one of Germany’s largest charging station operators, raised its rates at the beginning of this month from 43 cents per kilowatt-hour to 47 cents. Fast charging, via DC, rose from 65 to 70 cents per kilowatt-hour, while faster charging, known as ultra-fast charging, rose from 68 cents to 75 cents per kilowatt-hour.
Discount supermarkets, DIY chains, and furniture stores that until recently offered customers free shipping while shopping now offer fees.
According to auto economist Stefan Bratzel, development poses a direct threat to the industry.
“The explosion of electricity prices could end up becoming an acute risk for vehicular mobility, and we need to be careful about that,” he told German media.
“If electric cars become more expensive to use, the increase in electric mobility is in danger of collapsing, because it is difficult for anyone to buy an electric car,” said Bratzel, who is also the founder of the Center for Automotive Management (CAM). . He and other advocates for electric cars are now calling on the German government to ensure that the price of electricity remains lower than the price of gasoline, which they say is crucial to the future of electric cars.
“Electric cars are losing their charm,” Helena Weissbert, director of the Center for Automotive Research in Duisburg, wrote in a recent commentary to the economic daily Handelsblatt.
Government subsidies for electric cars are set to be halved to €4,500 (£3,900) from 2023, while buyers of plug-in hybrid cars, who are currently receiving €6,750 in payments, will no longer be subsidized. The total available is set to be €2.5 billion, enough to cover bonuses for just 400,000 electric cars – less than 1% of cars on German roads.
Industry watchers say they do not believe the EU reform on the cards that would separate the price of electricity from the price of gas will happen fast enough.
“The market impulse should work, and now, that’s absolutely pivotal,” said CAM’s Bratzel.
One suggestion that can be implemented relatively quickly is to increase the vehicle tax on diesel and petrol cars. Electric cars are currently not eligible for the vehicle tax. They can also use bus lanes and parking spaces that are not available for non-electric vehicles.
In Norway, where the government was one of the first countries to adopt fiscal stimulus for the purchase of electric cars and the creation of a large-scale charging network, 64.5% of new cars registered last year were electric cars, placing them at the top of the list compiled by the Association of European Automobile Manufacturers.
Germany ranks sixth on the list with 13.6% and the United Kingdom is ninth with 11.6%.