y Tyler Durden
Germany is sliding toward a recession, with the latest indicator flashing bright red. According to the European Automobile Manufacturers' Association (ACEA), new August data show that the demand for electric vehicles crashed.
ACEA reported a 69% plunge in EV deliveries in Germany last month, with just over 27,000. Across the region, there was a 36% drop. Sliding demand comes after Germany slashed incentives, making EVs less affordable for the working class.
Bloomberg's visual on the EV crash in Germany last month provides an ominous reality for the EV space and highlights troubles mounting for Europe's largest economy.
Across the continent, new car registrations tumbled 16.5% compared to a year ago.
"The downturn in EVs is putting carmakers like VW and Renault SA at risk of hefty fines as tighter European Union fleet-emissions rules are set to kick in next year," Bloomberg noted.
ACEA warned, "A continuous trend of shrinking market share for battery electric cars in the EU sends an extremely worrying signal to industry and policymakers," adding automakers across the bloc must "call on the EU institutions to come forward with urgent relief measures before new CO2 targets for cars and vans come into effect."
The slump in new EV sales could derail the EU's zero-emission deadlines in the coming years. This has also pressured Volkswagen to consider closing factories for the first time ever.
Furthermore, the timing of the EV downturn in the EU comes as Germany's economy may already be in a recession.
The Bundesbank said Thursday that "the German economy is still navigating choppy waters," adding that the third quarter has been a very "weak start" for manufacturing and construction and disappointing household spending.
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