3.1 Sales Trend

Figure 1 illustrates how China has dominated electric car production over the years. China’s electric car industry is characterized by strong sales and significant turnover, testifying to its dominance. In the global market, China’s electric vehicle industry leads in terms of huge volume, as shown in Figure 1. China’s electric vehicle industry has generated much more revenue than other countries. This economic dominance is complemented by the data in Figure 2, which highlights China’s superior sales volumes. The large number of electric cars sold in China illustrates China’s dominant position in the industry. (Colin McKerracher, 2023).

3.2 Infrastructure Development

Germany and China both have been focused since the beginning to develop a big EV market, however, when we view it precisely, Germany’s policies are comparatively less aggressive than China’s, which is depicted in the sales and revenue numbers in Figures 1 & 2. China’s urban planning and smart city projects link EV infrastructure development with broader urban development strategies. (Xinhua, 2022) This approach optimizes the use of electric vehicles in cities and effectively responds to congestion and pollution problems. China has rapidly expanded its network of electric car charging stations as it addresses distance anxiety and facilitates convenient urban and rural access for electric car owners. The expansion is supported by significant government investment, including incentives for public and private entities involved in the development of charging infrastructure. Figure 3 helps us scale the differences in infrastructure policies by comparing the number of charging stations built between 2016 and 2023..

Figure 3 shows charging infrastructure trends between China and Germany, with China clearly showing more aggressive charging station investment growth than Germany. For the period 2016-2022, China’s growth path highlights its strategic commitment to support the adoption of electric vehicles through extensive infrastructure development. This proactive approach will not only solve anxiety problems but also facilitate the widespread use of electric vehicles in urban and rural areas. In Germany, on the other hand, there is an upward trend in freight infrastructure, but the scale and pace seem to be more gradual. This difference underlines China’s leading position in the global electric vehicle market thanks to significant government investment and policies aimed at promoting sustainable mobility solutions. The data in Figure 3 highlights the key role of strong charging infrastructure in accelerating the adoption of electric vehicles and underscores China’s dominant position in shaping the future of electric transportation.

3.3 Implied Policies Overview

So far the observations keep hinting towards the role of Government implied policies in China and in Germany. Hence it becomes imperative to have an overview of how over these years, what different did the governments of both countries have done to result in these significant results. Whether it is the need of environmental concerns or motivating the producers by providing incentives or having an aggressive implication to integrate EVs, it is better illustrated by Table 2 below showing the policies application by both countries overtime. (Federal Office for Economic Affairs and Export Control (BAFA), 2024)

As appeared in Table 2, which compares government arrangements and motivating forces for EVs in both nations from 2015 to 2023, there are a few imperative contrasts in how China and Germany bargain with this issue. Major endowments for China, required generation quantities and broad venture in charging framework; These arrangements highlight the quick improvement towards worldwide authority in electric cars based on solid government sponsorship and sound technique. On the other hand, Germany has been more hesitant almost advertising diesel bans also green vitality systems. Usually since it has taken its time to extend appropriation plans or include to its EV charging systems not at all like China which acted instantly.

By and large, it can be concluded from this table that whereas China’s approach has been exceptionally confident as distant as EV take-up and outflows diminishment endeavors are concerned, Germany has favored caution in see of its administrative complexities and natural concerns. These variations show distinctive national techniques that shape long run course of their particular EV markets.

3.4 Standardizing the Comparison

From the above analysis points we have noticed how China’s EV market is dominant worldwide. But it is eminent to match the scale for comparison to have a better idea. It would not be fair to taking the view points of Sales, Revenue and Investments without considering the population and other factors. Hence, to create a balanced scale of comparison, we have to do per-capita analysis of both the countries to find out whether the projected analysis so far stands or there is a difference in the inference. Table 3 below encapsulates data necessary for the comparison of Revenue per capita of both China and Germany. (Destatis Statistisches Bundesamt)

Table 3 provides us sufficient data for comparison and we can clearly see that our observation from 3.1-3.3 has completely changed when we normalise the data on a balance. To better visualise it Figure 4 provides us the graphical comparison of the Revenue per capita of both the countries

To summarize,the data in the Table 3 includes annual figures from 2015 to 2023 comparing Germany and China by population, total electric vehicle revenue and electric vehicle revenue per capita. During this period, the turnover of electric vehicles in Germany has increased significantly, and there have been significant changes in percentage, such as 100% growth in 2016 and 2017, and a constant growth of 27.66% in 2023. Also, the income of electric cars per inhabitant increased significantly, and increased e.g. 100% in 2016 and 2018 and 26.14% in 2023.In China, total electric vehicle revenues were higher, but growth was more volatile. Significant jumps, for example, 62.35% in 2016 and a significant 257.71% in 2021. The per capita yield of electric vehicles also grew strongly as depicted in Figure 4, for example, 61.29% in 2016 and 255.22% in 2021, but slowed down until 2023 percent.

4.1 Household aquired: Electric v/s Non Electric Vehicle

To begin with the analysis, we will study the household acquisition of electric and non-electric vehicles in terms of sales, as shown in Figure 5. The provided data from 2016 to 2023 illustrates a notable shift in consumer behavior in Germany. Non-electric vehicle sales have steadily declined from 3,300 thousand to 2,400 thousand, while electric vehicle sales have surged from 25 thousand to 672 thousand. This trend reflects the growing preference for electric vehicles, driven by environmental concerns, advancements in EV technology, and supportive government policies. Figure 5 highlights this significant transformation in Germany’s automotive market. (Loisel et al., 2014)

In Figure 5, we look at the development of German vehicles from 2016 to 2020, divided into non-electric vehicles (NEV) and electric vehicles (EV). The data shows significant growth in electric vehicles, which have surpassed EVs in recent years. In particular, sales of electric cars have shown steady growth, reflecting increasing adoption and government incentives to reduce carbon emissions. While NEV sales remained stable, they did not show comparable growth. This trend underscores the consumer shift toward sustainable transportation options and regulatory action to promote cleaner energy sources in the automotive industry.

Looking at Figure 6, which looks at the share of EVs and electric cars in Germany in 2023, we expect the market share of electric cars to continue to grow. This change is due to technological advances, expansion of charging infrastructure and changing consumer preferences for environmentally friendly vehicles. Policymakers and industry stakeholders will likely continue to focus on encouraging the adoption of electric vehicles to achieve broader sustainability goals and reduce reliance on fossil fuels for transportation.

4.2 PHEVs v/s BEVs: State Wise Share

The electric vehicle market in Germany has been largely driven by the adoption of BEVs and PHEV. Why is this so? All-electric battery-powered BEVs and PHEVs, which combine a conventional internal combustion engine (ICE) with electric drive, are an integral part of the country’s carbon reduction strategy and transition to sustainable transport.(Hecht et al., 2022) Table 4 below shows (as of 01 January 2022), use of BEV and PHEV cars by state in Germany. The highest figures were in North Rhine-Westphalia, 131 thousand BEV and 131 thousand PHEV. This is probably due to its position as the most populous state and the center of industrial and economic activity. The states of Bavaria and Baden-Württemberg also showed significant adoption rates, reflecting their strong automotive industries and strong economies. In contrast, in smaller states such as Bremen and Saarland, the number of BEVs and PHEVs was lower; 3.05 thousand BEVs and 3.8 thousand PHEVs registered in Bremen. Those differences can come from differences in population density, economic conditions, and the availability of electric vehicle infrastructure.

As shown in Figure 7a, the role of plug-in hybrid electric vehicles (PHEVs) varies considerably across German states, highlighting regional differences in deployment. In North Rhine-Westphalia, approximately 0.73 percent of the population owns a PHEV, reflecting the state’s strong commitment to electric mobility. Baden-Württemberg and Bavaria also have high adoption rates, with approximately 0.89 percent and 0.77 percent of their population owning PHEVs. These economically strong and industrialized countries are pioneers in reducing emissions and promoting sustainable transport. (Massiani, 2015)

In contrast, states such as Mecklenburg-Vorpommern and Bremen have lower PHEV ownership, with around 0.29% and 0.56% of their population owning a PHEV. That difference may be due to differences in economic capacity, population density and availability of charging infrastructure, which are crucial factors influencing the adoption of PHEVs.Overall, PHEVs play a crucial role in the transition to sustainable transport in Germany. The adoption rates of different states suggest the need for tailored strategies to address regional challenges and exploit local opportunities to promote electric cars. PHEVs complement battery electric vehicles (BEVs) and are important to broader efforts to improve energy efficiency and reduce carbon dioxide emissions in the transportation industry.

Figure 7b highlights the central role of battery electric vehicles (BEVs) in Germany’s journey towards sustainable transport and shows significant regional differences in adoption rates. In North Rhine-Westphalia, approximately 0.73% of the population drive BEVs, which shows a strong commitment to zero-emission vehicles. Similarly, Baden-Württemberg and Bavaria have significant BEV ownership, with approximately 0.95 percent and 0.87 percent of their population owning BEVs. These countries are pioneers in reducing carbon dioxide emissions and adopting ecological transport solutions.

On the other hand, states like Mecklenburg-Vorpommern and Bremen have low BEV usage, with only about 0.35% and 0.45% of their population using BEVs. This lower adoption is due to economic factors, population density and the availability of charging infrastructure, which are critical to supporting BEV growth.In general, BEVs are central to Germany’s strategy for cleaner energy and less dependence on fossil fuels. Disparate adoption rates across states suggest the need for tailored strategies to address regional barriers and take advantage of local opportunities to promote electric vehicles. Complementing plug-in hybrid electric vehicles (PHEVs), BEVs play a key role in improving energy efficiency and significantly reducing traffic emissions.

In Germany, plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs) are central to promoting sustainable transport, as shown in Figures 7a and 7b. PHEVs dominate in North Rhine-Westphalia, Baden-Württemberg and Bavaria, demonstrating the strategic adoption of hybrid technology in emission reduction strategies. The state of Lower Saxony and Hesse also has significant PHEV ownership, reflecting a balanced transition to cleaner energy solutions.

On the other hand, BEVs are widely used in North Rhine-Westphalia, Baden-Württemberg and Bavaria, which underlines the strong commitment to zero-emission vehicles and important efforts to reduce the carbon footprint. These differences highlight the importance of tailored strategies that take into account local economic conditions, infrastructure availability and population density.Overall, PHEVs and BEVs are an integral part of improving energy efficiency and significantly reducing emissions, which is in line with Germany’s overall goal of sustainable mobility.