McKinsey Study Reveals Electric Car Regret Among German Drivers
A recent McKinsey study has highlighted a growing trend among electric car owners in Germany and other countries: many regret their purchase and are considering a return to combustion engines. According to the study, 24 percent of German electric car drivers plan to switch back to traditional engines for their next vehicle. This figure puts Germany in the middle of the pack, with higher percentages in Australia (49 percent) and the USA (46 percent).
The primary reason for this shift is the perceived high total operating costs of electric cars, cited by 47 percent of respondents. Inadequate charging infrastructure and changes in travel behavior on long distances were also significant factors, mentioned by 27 percent and 26 percent of respondents, respectively. Germans, in particular, have higher expectations for electric car range, wanting to travel 500 kilometers on a single charge compared to the global average of 469 kilometers.
China's Strategic Tariff Proposal to Benefit German Luxury Car Makers
In a bid to mitigate potential EU tariffs on Chinese electric cars, China has proposed reducing its current tariffs on large motor vehicles from the EU, currently set at 15 percent. This move aims to benefit German luxury car manufacturers like Mercedes-Benz and BMW, which stand to gain significantly from lower tariffs on their exports to China. The proposal was discussed between Chinese Minister of Commerce Wang Wentao and German counterpart Robert Habeck during a meeting in Beijing.
The timing of this proposal is critical as the European Union considers increasing tariffs on Chinese electric vehicles by up to 48 percent later this year. German Chancellor Olaf Scholz has expressed a desire to reach a negotiated solution, emphasizing the need for progress from China. The ongoing negotiations reflect a complex interplay between economic interests and political strategies, with broader implications for both regions.
- Felix Rupalla, Senior Asset Leader at McKinsey, noted that the dissatisfaction among electric car drivers is partly due to the insufficient charging infrastructure, particularly for fast charging points on medium and long-distance routes. This issue disproportionately affects long-distance travelers, even though such trips are infrequent.
- Interest in electric cars from China is notably higher in Germany than the European average. Thirty percent of German electric car owners and potential buyers are open to purchasing a Chinese model, attracted by promises of long range, innovative technologies, and good value at comparatively lower prices.
- The proposed Chinese tariff reduction is seen as a strategic move to leverage Germany's influential auto industry to pressure Berlin against supporting the EU's proposed tariffs on Chinese electric vehicles. The German automobile industry is one of the largest in the European Union and holds significant sway in political and economic negotiations.
- Deborah Elms, head of trade policy at the Heinrich Foundation, suggested that the European Union might delay the imposition of new tariffs pending the outcome of negotiations. This delay could allow both sides to make sufficient progress towards a mutually beneficial solution.
