The share of electrified vehicles in the German new passenger car market surpassed those of diesel and petrol in October, Kallanish learns from official data.

New petrol registrations declined 43.9% year-on-year last month to a share of 36.2%, and diesel sales sunk 56.7% to a share of 17.3%. Meanwhile, the market share of powertrains with and without a plug took a combined 45.8%.

This breaks down to a 30.4% share of BEVs, PHEVs and FCEVs, with a total of 54,327 units registered – an all-time record.  Another 27,593 registrations were for hybrid electric vehicles (HEVs) – those that don’t have a plug – with a market share of 15.4%, according to Germany’s Federal Motor Transport Authority (KBA).

The strong momentum for EVs in the country contrasts with acute supply shortages and long delivery times, seen by some as the reason for the declining sales of conventional cars.

Germany Trade & Invest, a federal economic promotion agency, says the explanation is “relatively simple.” Its automotive expert Stefan Di Bitonto adds: “Carmakers decide what sort of vehicles they allocate parts like semiconductors to. The profit margins for electric vehicles are currently quite high.”

“That’s because the German state subsidises the purchase of EVs with up to €6,000 [$6,916]. Additionally, dealers offer a €3,000 rebate which is making buyers think that now is the right time to purchase a car. So, it makes sense to put semiconductors in EVs. Everyone all around is profiting,” he continues.

BEV sales rose 32% to 30,560 units last month, while PHEV sales slid 4.5% to 23,734 units, and FCEV registrations totalled 33. Sales of hybrids, or HEVs, declined 27.5% to 27,593 units or a market share of 15.4%.

The top-sellers were Renault ZOE (BEV), Ford Kuga (PHEV), Toyota Mirai (FCEV) and BMW 3 Series (HEV).

It’s also clear that the acceptance of EVs in Germany is growing, Di Bitonto adds.

“It’s a mutually reinforcing trend. People are buying EVs now because it’s advantageous to do so, but the increase in the number of EVs on the roads will almost certainly further boost their popularity regardless of the current shortages,” he concludes.