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Germany Sets New Electric Vehicles Record

November 4, 2021

While sales of conventional vehicles have suffered under supply shortages and long delivery times, EVs are rolling out of dealerships in Germany. The German Association of the Automotive Industry (VDA) says that in the month of October, for the first time, electric vehicles accounted for 30.4 percent of new vehicle registrations. That’s due to the current dynamics of the market.

“The explanation is relatively simple,” says Germany Trade & Invest automotive expert Stefan Di Bitonto. “Carmakers decide what sort of vehicles they allocate parts like semiconductors to. The profit margins for electric vehicles are currently quite high. That’s because the German state subsidizes the purchase of EVs with up to EUR 6000. Additionally dealers offer a EUR 3000 rebate, which is making buyers think that now is the right time to purchase a car. So it makes sense to put semiconductors in EVs. Everyone all around is profiting.”

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