Germany’s Car Dealers Face Collapse as Electric Vehicles Reshape the Industry
The shift to electric vehicles is reshaping Germany’s car dealership industry. Burkhard Weller, president of the VAD (Association of German Car Dealers), has warned of a looming crisis in aftersales services as traditional workshops decline. He is now pushing for clearer policies and faster subsidies to help dealers adapt.
In a recent AUTOHAUS Podcast, Weller outlined the urgent need for change. Without action, he predicts fewer dealerships, shrinking service revenue, and a struggle for independent owners to survive.
Weller’s warnings focus on the rapid electrification of vehicles. As wear-and-tear services drop, he expects the aftersales sector to halve in size. Traditional workshops, once a core part of dealership revenue, are facing steep declines.
The industry is already consolidating. Weller forecasts that dealership locations will fall below 12,000, with independent owners dropping to fewer than 3,000. Many will either close or merge under larger groups. To ease the transition, Weller is calling for streamlined electric vehicle subsidies. His demands include a quick rollout, retroactive eligibility from January 1, and support for young used cars. He also insists on a subsidy process that fits smoothly into sales, without extra paperwork. Initial discussions in Berlin suggest policymakers are listening—especially when dealers speak directly. While Weller has engaged with officials, the specific names of those involved remain undisclosed. The VAD’s push for political representation aims to give the sector a stronger voice in future decisions. Dealers, meanwhile, must rethink their business models. Weller stresses the need to reclaim services, update processes, and adjust pricing. Without these changes, many could struggle to stay afloat in an evolving market.
The challenges ahead are clear: fewer dealerships, shrinking service revenue, and a push for faster subsidies. Weller’s calls for action highlight the urgency of adapting to electric mobility. Dealers who fail to modernise risk being left behind as the industry transforms.
