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DONDUO ELECTRIC

Germany's electric vehicle charging pile surge, electric transformation is still questioned

2023-12-07

https://chd.in-en.com/html/chd-2435664.shtml


Not long ago, German car manufacturers Mercedes-Benz and BMW announced a "marriage" to establish a joint venture to operate a supercharging network in China. This move not only marks the strategic layout of the two auto giants in the global electric vehicle market, but also indicates their fierce competition in the key market of China. However, at the same time, Germany's domestic electric vehicle transformation still faces a series of challenges.

Not long ago, German car manufacturers Mercedes-Benz and BMW announced a "marriage" to establish a joint venture to operate a supercharging network in China. This move not only marks the strategic layout of the two auto giants in the global electric vehicle market, but also indicates their fierce competition in the key market of China. However, at the same time, Germany's domestic electric vehicle transformation still faces a series of challenges.

First, it’s worth mentioning that Germany has made significant progress in building electric vehicle charging infrastructure. As of October 1 this year, the number of public charging piles in Germany has grown to 113,100, with a total installed capacity of 5.2 GW. The number of charging piles has increased by 30% since the beginning of the year, and the charging capacity has increased by 40%. A recent report by the German Energy and Water Industry Association, Germany's largest energy association, pointed out that Germany's charging capacity has exceeded EU requirements. EU regulations require EU countries to provide 1.3 kilowatts of additional public charging capacity for every electric car sold, and 0.8 kilowatts for cars using plug-in hybrid technology. Based on the current number of electric vehicles in Germany, a total of 2.23 GW is needed. Germany’s installed charging capacity is already more than double this figure, indicating that the country is well prepared to handle the growing number of electric vehicles.

However, even with the progress in charging infrastructure, Germany is still far behind targets in its electric vehicle transition. Previously, the German government's goal was to promote the number of electric vehicles to 15 million by 2030 and build 1 million charging stations. According to data from the German Federal Motor Vehicle Administration, as of October, the number of electric vehicles in the German market was only 1.3 million. Even including hybrid vehicles, this number is only 2.2 million. What’s even more worrying is that analysis by the Greenpeace Institute in Wuppertal predicts that the number of electric vehicles may only reach 9 million by 2030, which is far lower than the government’s target.

Sluggish demand for electric vehicles is one of the main reasons for this gap. Although the number of public charging points is increasing, many German consumers remain hesitant. On the one hand, although there are many charging piles, problems such as uneven distribution and slow charging speed still exist. Many of my German friends say that the lack of charging stations is one of the main reasons why they are reluctant to buy electric cars. A survey by KfW found that the number of electric vehicles is growing three times faster than public charging infrastructure, an imbalance that could be a barrier to the electric transition. On the other hand, the reduction in subsidies for the purchase of electric vehicles has also affected consumers' purchase intentions. Previously, the German government planned to allocate 212 billion euros to projects such as charging stations, battery factories and chip factories by 2027. Once these projects are completed, the cost of producing electric vehicles in Germany is expected to drop significantly. There are now reports that the funding may be unconstitutional. As a result, these projects closely related to the transformation of electric vehicles are full of uncertainty. This could further undermine consumer confidence.

It can be said that although Germany's charging infrastructure construction has made significant progress, Germany's efforts in electric vehicle transformation still face major challenges. The government needs to make more efforts on policies and incentive mechanisms to promote the popularity of electric vehicles.

 

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