High Fuel Costs Push German Drivers to Electric Cars

Germans are becoming increasingly open to switching to electric cars – also thanks to new government subsidies: According to the new "E-Barometer" from the insurance company Huk-Coburg, the frequency of switchovers has recently increased significantly. - AFP

High petrol and diesel prices are the main reason why a growing number of Germans are trading in their combustion-engine vehicles for electric cars. According to the E-Barometer published by the insurance company Huk-Coburg, the rate of switching rose sharply in the second quarter, covering April to June. High-mileage drivers who cover more than 12,000 kilometres a year were particularly likely to change their type of drivetrain, Huk-Coburg announced on Tuesday.

‍

How the E-Barometer Is Compiled

For the "E-Barometer", the insurer regularly examines the uptake and acceptance of electric mobility in Germany. The findings are based on the company's own data, by its own account, Huk-Coburg is Germany's largest car insurer, with 14.5 million vehicles on its books. Surveys are also carried out: for the current snapshot of public sentiment, a representative sample of 4,121 people was polled by the YouGov institute in May.

‍

One in Eight Vehicle Changes Now Goes Electric

Twelve percent of all vehicle changes within Huk-Coburg's portfolio, every eighth change, involved a combustion-engine car being replaced by a purely electric passenger vehicle. Before the start of the Iran war, in January and February, that figure stood at 6.3 percent in each month. Among high-mileage drivers, the share of switchers reached almost 15 percent in the second quarter.

‍

Fuel Costs Are Changing Buying Plans

In the survey, 24 percent of licence holders said that the movement in diesel and petrol prices since the start of the Iran war was the sole reason they had either considered buying a purely electric car for the very first time, or brought a planned purchase forward. Public approval of electric cars also climbed markedly: for the first time since the quarterly surveys began in autumn 2024, more than half of respondents (52 percent) said they regard electric cars as "good" or "very good".

‍

Momentum Began Building Earlier in the Year

The switching rate had already increased in the first quarter, above all in March, the first month after the start of the Iran war, when fuel prices had already risen sharply. According to Huk-Coburg, the new state subsidy for electric car purchases, which was already on the horizon at that point, also contributed to the rising number of switchers.

‍