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HUK Coburg Analysis: One Third Switches Back from Electric Car to Combustion Engine

Not only are electric cars currently selling poorly, but there also appears to be a high "recidivism rate," according to data from the insurer.

Turning their backs on EVs: One third of BEV drivers at HUK Coburg switched back to combustion engines. Companies like Stellantis are indeed pushing electric vehicles but are pursuing a dual strategy with multi-powertrain models like the Opel Corsa, which is available as both a BEV and an ICE. | Photo: Opel
Turning their backs on EVs: One third of BEV drivers at HUK Coburg switched back to combustion engines. Companies like Stellantis are indeed pushing electric vehicles but are pursuing a dual strategy with multi-powertrain models like the Opel Corsa, which is available as both a BEV and an ICE. | Photo: Opel
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Johannes Reichel

Electric cars sell poorly: In the third quarter of 2024, only 3.9 percent of private car buyers opted for a purely battery-electric drive. In the last quarters of 2022 and 2023, the switch rate from combustion to electric cars was still 6.9 percent and 6.6 percent, influenced by the impending reduction of the environmental bonus for electric cars. Not only that, but among private car buyers, there are apparently more and more people switching back from an electric car to a combustion engine, as reported by FAZ based on numbers from the largest car insurer, HUK Coburg. Their rate was still 14 percent in 2021 and has now reached 34 percent in the first nine months of 2024. At Coburg, 13.9 million vehicles are insured, pointing to a market share of a quarter among privately registered vehicles, so that representative data on the development of the car market can be derived from their own pool.

According to FAZ, the data from HUK on combustion and electric drives also confirmed that the choice of drive is heavily dependent on personal housing situations. Among private car operators in the German average, the share of purely electric cars was 2.9 percent, among homeowners 4.1 percent, among apartment owners 2.4 percent, and among renters only 1.3 percent. In Bavaria, the share of electric cars reached 3.4 percent and in Lower Saxony 3.2 percent, while Saxony-Anhalt and Saxony occupy the last places in the German ranking with 1.5 percent.
 

Consistent Readiness for BEVs, but Not for More Money

Basically, the readiness to buy an electric car remains consistent: For 18 percent of private car buyers, only electric drive will be considered for a new purchase in 2024. This is the result of a survey for the insurance company HUK, for which Yougov interviewed around 4,000 people in Germany. Age plays a significant role: Among the respondents under 40 years old, 28 percent definitely wanted their next car to be a BEV, whereas among those older than 40, only 12 percent felt the same. A third of potential German car buyers do not want to pay a premium for an electric car, 19 percent would pay up to 10 percent more for a purely electric vehicle, and 33 percent would pay more than a 10 percent surcharge. Overall, the survey also showed deep skepticism towards electric drive: 46 percent found electric drive good or very good, while 47 percent found it "less good" or "not good at all." Also, 29 percent responded that they would only switch to a battery electric car if only electric cars were legally permitted.

Globally, the German market with its retro tendency is against the trend: The American analysis firm Gartner forecasts strong growth for the electric car market worldwide. The number of BEVs will increase from 32.6 million in 2023 and 45.9 million in 2024 to reach 61.9 million by 2025, with a growth of 33 percent in 2025, driven primarily by demand from China. In the coming year 2025, 23.9 million cars with plug-in drives will also be purchased. Within the global market total of 85.1 million e-cars for 2025, 49 million will be in China, 20.6 million in Europe, and 10.4 million in North America.

Translated automatically from German.
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