The Influence of Demand Structure and Government Support on EV Market in Germany

The automotive industry in Germany is a dynamic industry that is currently in the process of major structural changes, in particular, the transition to electric cars, whose development relies heavily on government support. Nevertheless, the implementation of the outlined strategy of introducing electric vehicles is not well coordinated. The paper attempts to emphasize the effect of the electric vehicles’ promotion strategy using the analysis of the electric vehicle market. The research also aims to examine the prospective possibility of demand rise through microeconomic analysis by reviewing the influence of policy measures. We expect that the industry of electric vehicle production is likely to grow and its competitiveness is based on heavy state subsidization. The main contribution of the paper lies in the compilation of the factors stressing the economic viability of the mass electric vehicle production and in creating the basis for further research.