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Germany's electric mobility surge reveals progress and persistent policy gaps

Germany's auto industry is racing toward electrification—yet one in eight companies hasn't even started. Why are firms urging policymakers to step up now?

The image shows a bar chart depicting the number of electric vehicles in the United States, with...
The image shows a bar chart depicting the number of electric vehicles in the United States, with the text indicating that the total installed capacity of BMW has increased. The background of the image is white.

Germany's electric mobility surge reveals progress and persistent policy gaps

Germany’s shift to electric mobility is further along than many assume. A new report shows that over a fifth of automakers have fully transitioned to electric vehicles. Meanwhile, nearly 40% of companies are well into their transformation plans.

Yet challenges remain as firms call for stronger government support to keep the momentum going. The study reveals a mixed picture of progress. While one in four businesses is still in the early stages of switching to electric mobility, one in eight has not even started. At the same time, more than three-quarters have invested in e-mobility and digital innovation over the past three years.

Over 20% of German automakers have completed their transition to electric vehicles. Another 38% are considered advanced in their shift. However, more than a third of companies continue to develop combustion engine technology alongside electric solutions.

Businesses are pushing for clearer policies to guide their investments. The credibility of government measures plays a key role in shaping corporate decisions. In late 2023, many firms noticed a drop in political commitment to the auto industry’s transformation.

Companies are also calling for more public funding. Over 80% want increased investment in education, research, and innovation. An equal number demand lower electricity prices to ease the transition.

Leading firms strongly back the EU’s 2035 phase-out of combustion engines. They oppose any weakening of CO₂ fleet standards, arguing that firm targets are essential for long-term planning. The report highlights both progress and hurdles in Germany’s electric mobility shift. With a significant share of companies already advanced in their transition, the focus now turns to policy stability and financial support. Firms stress that consistent government backing will determine how quickly the industry can fully embrace electric vehicles.

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