Electric vehicles (EVs) are often hailed as the future of transport, promising a cleaner and more sustainable alternative to traditional internal combustion engine (ICE) vehicles. However, the road to widespread adoption is fraught with challenges, particularly in the European Union's largest markets. Our Deloitte EV Index examines the current state of demand, supply and the landscape for battery electric vehicles (BEVs) in Germany, highlighting the hurdles that need to be overcome for mass adoption.
Our analysis focuses on three different dimensions that measure the status quo on the road to electric mobility. In the first iteration of our index (Q1 2025), we look at the following key markets in Europe: Germany, Spain, Italy and France. A score value calculated for the Chinese market is used as a reference.
The overall situation in the four largest EU markets is similar, making it difficult for BEVs to penetrate the market. Customer demand remains low as buyers are very concerned about the loss of comfort, especially in terms of range and charging experience, and are unwilling to accept this at a significantly higher cost. Even though the running costs of BEVs are lower than those of ICE, consumers are still unable to justify the high additional purchase costs. And a higher depreciation on the used car market exacerbates the unfavorable cost/benefit ratio. All in all, compared to traditional powertrains, electric vehicles are still more expensive, have a shorter range and the availability of vehicle models is significantly lower.
A closer look at the German market shows clear signs of why the country is struggling with the adoption of new powertrains in the passenger vehicle sector. We look at each of the analysed dimensions and shed some light on the drivers, challenges and overall developments for each:
While BEVs offer a promising path to sustainable transportation, significant challenges remain in terms of demand, supply, and infrastructure. Addressing these issues is critical to achieving mass adoption and realizing the full potential of electric mobility in Germany and beyond.
Would you like to learn more about the results of our EV Index?
Download the Deloitte EV Index here for more information on the current
state of the EV transformation in Europe. And stay tuned for an update in Q3 2025 with insights into other markets outside of Europe.