As of: March 26, 2024, 9:18 a.m
By: Markus Hofstetter
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European manufacturers are losing ground to China in the electric car market.
According to a recent study, this could cost a quarter of a million people their jobs in Germany.
Hamburg - Sales of electric cars are stalling.
In order to make full use of their factories, car manufacturers are increasingly relying on combustion models, says an expert.
Allianz Trade sees it differently.
In its study “Global Automotive Outlook: Navigating through turbulents”, the credit insurer predicts that the number of new registrations worldwide will increase by almost two percent this year.
According to the study, electric cars should sell even better.
In this segment, global sales are expected to increase by almost 33 percent to 18 million new registrations.
For Europe, the analysts in the study even expect an increase of over 41 percent.
Allianz predicts electric car boom: E-European manufacturers are lagging behind
But what appears to be good news at first glance has a bitter aftertaste for European and especially German car manufacturers.
According to the study, they are losing more and more ground, especially to China, because they entered the electric car segment too late and are lagging behind, especially when it comes to batteries and software.
The result is that they now have difficulty producing cost-effective models profitably.
The competitiveness of European manufacturers is also being affected by rising transport and production costs.
Electric car manufacturers from China are pushing hard into Europe.
The car freighter BYD Explorer No.1 is docked in Bremerhaven with 3,000 new cars on board.
© Lars Penning/dpa
The different prices for electric vehicles are cited as evidence.
According to the study, the average price for electric cars in Europe in 2022 was 55,821 euros, 27 percent higher than for combustion engines.
In China, on the other hand, electric cars cost an average of 31,829 euros and were therefore a third cheaper than combustion engines.
Allianz predicts electric car boom: 730,000 jobs across the EU are at risk
“The automotive industry is the backbone of the European economy, it accounts for six percent of economic output, serves as an innovation and export center and, with 6.5 million direct jobs, employs a large number of people in Europe,” says Milo Bogaerts, CEO of Allianz Trade .
According to the study, many of these jobs are at risk.
The 13 percent increase in insolvencies among automobile manufacturers and suppliers in Germany last year shows that more and more companies in this country are also having difficulty adapting to the changes in the industry.
Since electric cars consist of fewer parts, analysts at Allianz Trade expect that manufacturers could get by with 30 percent fewer staff.
According to the study, 730,000 jobs are at risk in the EU, 260,000 of them in Germany alone.
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Allianz predicts electric car boom: Politics must stimulate market acceptance
The numbers could increase if European manufacturers continue to lose market share.
Now, in Allianz Trade's opinion, politics is particularly important.
“To catch up in the new race and boost market adoption, Europe should take immediate steps to build an ecosystem around electric vehicle production, increase support for the electrification of the automotive sector and expand the infrastructure for charging stations,” says Jasmin Gröschl, economist and co-author of the Study.
“This is crucial to driving forward the electrification of the market and maintaining the competitiveness of the German automotive industry.”