Government subsidies for electric vehicles are hurting domestic suppliers
Will China be the car manufacturer of the future? If one reads some of the more recent headlines in German media, it certainly seems like it. The leading tabloid paper Bild was in full panic mode, worrying that Chinese cars “will overrun Germany” and that they have “tripled their market share”. A closer look at the data, however, reveals that this 300% increase took place exclusively in the electric vehicle (EV) market, and even there Chinese cars are not the most popular. Starting from very low historic sales numbers, the market share for newly registered passenger cars between January and April 2023 was a meagre 0.8%, compared to the almost 60% share of German car manufacturers.
