EVTrendsinGermanyMarketregulatoryaspectsandConsumerperspectiveJanPfitzner,StephanBetzConsumer&MarketingInsightsDecember4,2023©GfK1Framework.MarketregulatoryaspectsConsumerperspective©GfK204/12/2023EVsaredevelopingwellinGermany,butstillonlymakeupasmallproportionofallvehicles.EuropeTop5NewEVregistrationsEVshareamongvehiclesStilldominatedbyinGermanyinGermanyEuropeanbrandsandTesla(EVRegistrations2023)500.0002023PetrolChineseBrandswith1Germany450.000(01-10):Dieselmarketentryinthepast2years2UnitedKingdom400.000424.6233France91%4Sweden/Norway350.0005Netherlands/BelgiumPHEV300.000EV2%3%250.000others200.0004%150.000100.00050.000020132014201520162017201820192020202120222023▪GermanystillplaystheleadingroleintermsofEVvehicleregistrationsinEurope.TheUK,France,theBeneluxcountriesBelgiumandtheNetherlands,aswellastheScandinaviancountriesSwedenandNorwayfollow.▪EventhoughEVregistrationsinGermanyareincreasingsignificantly,theshareofallvehiclesisstillonly3%.▪InadditiontoTesla,Europeanbrandsdominatetheportfolio,butChinesebrandshavebeenenteringthemarketsince2022.04/12/2023Source:Kraftfahrbundesamt(KBA),Eurostat©GfK3Thetargetof15millionEVsinGermanyisnotyetinsight.Market„Autogipfel“inBerlinaspects27thNovember202304/12/2023regulatoryTarget2030ClimateprotectionpolicyStatesubsidies15MioInfrastructureProductlandscapeState2023MarketregulatoryPublicacceptance1,3Mioaspects▪Withonly1.5millionregisteredelectricvehicles(EV)todate,Germanyiscurrentlynotontracktoachieveitstargetof15millionEVsuntil2030.▪Theframeworkconditionswerediscussedattheso-called"Autogipfel"inBerlin,whichwasattendedbytheFederalChancellorandleadingfiguresfromtheindustry.OneimportanttopicwasthequestformoreaffordableEVs.©GfK4PoliticianshavesetthegoalofreducingCO2emissionsandpromotingrenewableenergies.MarketClimateprotectionpolicyaspectsregulatoryStatesubsidies04/12/2023InfrastructureProductlandscapePublicacceptance▪EUrequirementsintheformoffleetemissiontargetsmustbeimplementedbythememberstates.▪With"Bündnis90/DieGrünen",agreenpartyisinvolvedintheGermangovernment.▪Thepressureonpoliticiansisincreasing,drivenbynationalandglobalweathereventsthatareincreasinglybecomingthefocusofpublicattention.©GfK5Thestatepromotesthepurchaseofelectriccars.MarketRegistrationsofelectricvehiclesaspectsClimateprotectionpolicy500.000Statesubsidies04/12/2023Infrastructure450.000Productlandscaperegulatory400.0002019/2020Publicacceptance350.000Bonusincreases300.000250.0002023/2024Bonusdecreases200.000150.0002016Terminationofbonusesplanned100.00E0nvironmentalbonusforendof202450.000020132014201520162017201820192020202120222023▪VarioussubsidyprogrammesstillsubsidisethepurchaseofEVstoday-supportedbythefederalgovernmentandindustry.▪EVsaretax-exempt(privatevehicles)orsubsidised(companycars).Source:Kraftfahrt-Bundesamt(KBA);https://de.wikipedia.org/wiki/Umweltbonus©GfK6Thechallengeofsettingupacharginginfrastructureisjustbeginning.MarketregulatoryClimateprotectionpolicyTheNetherlandsaspectsStatesubsidies29.4%04/12/2023InfrastructureGermanyProductlandscape19.4%Publicacceptance©GfK7▪HalfofallEVchargersinEUconcentratedinjusttwocountries,NetherlandsandGermany,whichonlymakesup10%ofEUsurfacearea.▪ThenumberofEVsisgrowing40timesfasterthantheexpansionofpublicchargingstationsinGermany.Sources:GfKGeoMarketingWhitePaperElektroautoaffinität;Acea:https://www.acea.auto/press-release/electric-cars-half-of-all-chargers-in-eu-concentrated-in-just-two-countries/ThevarietyofelectriccarsinEuropeandtheUSAissignificantlylowerthaninChina,especiallyforlower-pricedEVs.MarketClimateprotectionpolicyAvailableBEVmodelsaspects23504/12/2023regulatoryStatesubsidies135Infrastructure100ProductlandscapePublicacceptance49ChinaEuropeGermanyUSA▪ThenumberofBEVsavailablein2023isratherlowinEuropeandGermany,butespeciallyintheUSA.▪IncontrasttoChina,therearestillnoEVsunder€20.000availableintheotherregions.Source:Kraftfahrt-Bundesamt(KBA),FZ8.3;JATOWebinarSeries2023©GfK8Manyfactorsarerelevanttoconsumers'purchasingdecisions.MarketClimateprotectionpolicyaspectsregulatoryStatesubsidies04/12/202360InfrastructureProductlandscapePublicacceptance▪NIQ&GfKhasconductednumerousstudiestosurveyandanalysetheviewsofthepopulation.WhataretheargumentsinfavourofbuyinganEVandwhataretheargumentsagainst?▪Thesecondpartofthispresentationshowsanoverallanalysisofthemostrecentstudies.©GfK9GfKConsumerLife:Societalconcerns&categoryimpacts.ConflictingtrendsforEVcategoryadoptionRankingofsocietalconcerns0#1Inflation#1Inflation#2Standardofliving1#5Climatechange2#2StandardoflivingGlobal20233#3Climatechange45Consumer6perspective704/12/2023891011Germany12131415201520162017201820192020202120222023▪DevelopmentinGermanyrepresentsaconflictingsituationforEVadoption:▪Peoplebecomemoreconcernedonglobalwarmingandareseekingsolutionsthatsupportamoresustainableliving▪However,consumer‘sconcernsontheirfinancialsituationincreasedagainandarebackonthetopranksSource:GfKConsumerLifeGlobal2023©GfK10EVadoptionstatus–indicatedby„ConsumerReadinessScore“.HowwearebuildingourKPIConsumerReadinessScoreConsumer14%StatedConsideration(“verylikelytoconsider”)perspective-4%Adjustment/reductionbybarriers10%▪PriceSensitivity▪Chargingconcerns▪Purchasehorizon▪…04/12/2023▪WemeasurethepercentageofconsumerswhoareverylikelytoconsideranEVfortheirupcomingcarpurchase©GfK11▪Bytakingtheirmentionedbarriersintotheequation,wefinallydistillamore„committedConsideration“,the„ConsumerReadinessScore“Source:NIQEVConsiderationStudyEVadoptionstatus–indicatedby„ConsumerReadinessScore“.HeterogeneousEVadoptionstatusacrossmarketsConsumerReadinessScoreConsumer10%19%30%35%61%perspectiveGermanyUAEChinaNetherlandsNorway04/12/2023▪ComparablyweakadoptionstatusforGermany,trailingacrossmarkets©GfK12▪InChina,nearlyeverythirdis„readyforEV“▪NetherlandsandNorwayleadingintermsofEVreadiness,supportedbyagoodinfrastructureortaxationpoliciesSource:NIQEVConsiderationStudyWhichaspectsimpactEVadoption?DeterminedbycategoryinherentandpriceaspectsRelevanceEVEnablerrankingChargingChargingtimeSafetyavailability+#1concern:Features/Reliability/PurchasePricetechnologyBatterylifeServicingRangePerformanceConsumerStylingConvenienceperspectiveEnvironmentalimpactGermany04/12/2023ResalevalueConcernranking▪Safetyaspectsanddesignareimportanttopicswithlowconcern©GfK13▪EstablishedcarpurchasedriverslikeTechnologyandServicingarecurrently(still)takingabackseat▪CertainscepticismaboutthepositiveenvironmentalimpactofEVs▪Chargingaspects,batteryperformanceandpurchasepricearecrucialaspectSource:NIQEVConsiderationStudyOEMagendaforEVmarketsuccess.Marketregulatory„Keytoadoption“„Keytothehearts“ConsumerFunctionalfoundationEmotionalexperienceperspective▪Competitivepricing▪E-drivingexperienceitselfaspects▪Battery(range,quality)▪Latesttechnologyfeatures▪Addressingsafetyneeds▪Attractivedesign▪Strongserviceproposition▪Addressingconvenience&▪Charginginfrastructuresustainabilityneeds04/12/2023©GfK14Thankyou