Discount on Electric cars in Germany booming the demand of BMW i3

Germany: Following the German government deal with automakers to spend $1.4 billion as incentives to boost the sluggish electric car sales in April this year, the buyers will get a rebate of approximately USD4400 on purchase of electric cars which is expected to offset the higher price of electric vehicles. This move was taken by the government to move as quickly as possible towards electric vehicles. As a result, growth in the demand for latest version of BMW electric car i3 was observed in the passenger car market of Germany.

According to the company sources, the demand for new version BMW i3 with longer range battery, has also plunged many times since the introduction of car initial model in 2013. The country has received approximately 20% of the total orders received worldwide. Last month, the company has said that it is focussing on its self-driving car concept through advanced research and development.

The company also plans to launch its sports version of i3 in 2018 and the new model of electric car in 2021. The growing demand for electric vehicle and introduction of new models is anticipated to incline the demand for high performance and ultra-high performance tires in the country.

According to a recent report published by TechSci Research, “Germany Tyre Market Forecast & Opportunities, 2020”, the tire market in Germany is forecast to grow at a CAGR of around 7% during 2015-20. Demand for hybrid cars that include electric and plug-in cars is also anticipated to rise in the coming years, thereby further augmenting the tire sales in the country. The replacement tire segment accounts for the majority share in Germany’s tire market, and this trend is expected to continue through 2020 due to the country’s large automobile fleet size.

TechSci Research believes that, the decision undertaken by the German government to provide subsidy on the sale of electric cars is booming the demand of electric vehicles and is further anticipated to fuel the market for high performance and ultra-high performance tires in the country and is also expected to incline other tire manufacturers towards the production of these high performance tires.