Electric car market on the verge of an upswing

In his speech at the ‘Hungarian Battery Week’, the Minister first commented on the dismissal of the German Finance Minister by Chancellor Olaf Scholz. Nagy commented on the departure of FDP leader Christian Lindner, who had pursued an overly conservative budget policy. His departure could have a positive impact on the sector, as more funding may now be made available to promote electromobility.

Germany is lagging behind

The spread of electromobility has accelerated rapidly in recent years, but stagnated in 2024. Compared to China, where the proportion of purely electric cars is almost 30%, the proportion in Europe is significantly lower at around 14%. France is doing well in this area, but Germany is lagging behind due to its more conservative economic policy and budget cuts. Subsidies are needed to stimulate demand. As soon as Germany resumed its subsidy programme for electric cars – albeit only at company level – this alone boosted sales. Nevertheless, German car manufacturers are facing major challenges, and not just in their domestic market. Germany is losing market share in China, which has far-reaching economic consequences in Europe.

E-mobility unstoppable

Despite the current stagnation, e-mobility is unstoppable, emphasised Nagy. Hungary has also launched subsidy programmes for the purchase of e-cars for companies and for the expansion of the charging network. Consumer confidence is the key to the future of the e-industry. State regulation and a clear strategy for the development of the industry are therefore essential.