The transition to electromobility has stagnated in Germany. Imelda Labbé, President of the Association of International Motor Vehicle Manufacturers (VDIK) in the country, attributes this to inadequate charging infrastructure and the high cost of electricity and vehicles. She argues that long-term coordination among all stakeholders is essential for the transformation to succeed.
Ms. Labbé, what is the current status of the automotive industry in Germany?
The automotive industry finds itself in the midst of a major transformation. We’ve already made significant progress – whether it’s in vehicle connectivity or the development of driver assistance systems on the path toward autonomous driving. We’re seeing strong growth in electric vehicles, and especially high growth in plug-in hybrids. That said, we’re still not on track to meet the EU’s CO₂ targets. As long as the conditions for e-mobility aren't right, customers won’t buy in at the scale needed – and that means the industry continues to face looming penalties. That’s something we urgently need to address.
Which framework conditions make the biggest difference?
It all boils down to three aspects. First, range anxiety is still an issue. We’ve made progress in expanding the charging infrastructure, but it’s become clear that more needs to be done. We need significantly more fast chargers, especially in rural areas. To this day, three-quarters of all municipalities in Germany still don’t have a single fast-charging station. Second, electricity prices are far too high, making the cost of ownership for electric vehicles unattractive. And third, we need appealing entry-level offers. The coalition agreement mentions plans for new incentives – and that’s essential if we want to bring more affordable electric cars to market.
In your opinion, who is responsible for solving these issues?
This has to be a joint effort between policymakers and industry. All relevant stakeholders need to come together and develop a coordinated five-year plan. At the moment, there are too many ad hoc measures. Take subsidies, for example: they were available for a while, then abruptly ended right before Christmas, followed by months of silence. Now there’s talk of bringing them back – but no clarity on what that will look like. It’s the same with charging infrastructure and electricity pricing. That kind of uncertainty just doesn’t work. We need to bring everyone to the table – including urban planners and infrastructure developers – and create a real industrial master plan for Germany. A plan that’s reliable and clearly linked to coordinated targets. If we can piece that puzzle together, the transition will succeed.
What prospects do you see for international car manufacturers on the German market?
In recent years, we have observed a very continuous growth trend among international car manufacturers. At present, their market share stands at 43 percent. In my opinion, a 50 percent market share is conceivably in reach. Affordable mobility plays a central role here. Consumers want cars that are budget-friendly – not just to buy or lease, but to maintain. So far, international brands have led the way on this front. But we’re also seeing that the entire industry is catching on to this trend and responding with new offerings in the entry-level segment. So yes, things will remain very dynamic in the coming years.