According to a new report in Der Spiegel the energy crisis in Europe is putting the brakes on the electric vehicle revolution, and driving customers from the new technology.
As the prices of electricity rises in Europe charging e-vehicles is becoming more expensive than filling up a tank of gasoline or even diesel. Now a combustion engine vehicle is more than €30 cheaper per month based upon a mileage of 15,000 kilometers. That will leave E-vehicles at a clear disadvantage by the end of next year, according to analysis by Ferdinand Dudenhoeffer from the Center for Automotive Research.
In addition, as everyone’s pocketbooks grow lighter under surging inflation and skyrocketing fuel costs, the government refunds for purchasing electric vehicles have been reduced in Germany by 25%, and the state refund for hybrid vehicles has been completely eliminated. Given it can take an entire year to take delivery of an electric vehicle, combined with the smaller than expected refund, what few customers are still able to afford a new car in this environment are heading for the nearest combustion-engine car dealer.
The current climate was described as a, “toxic mixture of energy crisis and inflation” by Sabine Jaskula at ZF, Germany’s second biggest car systems supplier. She predicts there will be a collapse of electric car manufacturing in Europe next year. She believes that rather than the 18 million units analysts are projecting will be produced, only 11 million units will roll of the assembly lines.
According to another ZF representative, the EU plane to eliminate all combustion engine vehicles by 2035 is “illusory.”
Der Speigel also notes there is presently a shortage of electric charging stations across the country. In some metropolitan areas, as many as 60 vehicles have to share a single charging station, and the entire infrastructure is in need of a large-scale refurbishment.
Veteran electric car dealer Wolf Warncke says with conditions like this, “There is a risk that prospective buyers will turn their backs on e-mobility.”
The Daily Financial Trends
