Surge of Unsold Electric Cars Floods German Parking Lots Due to Declining Demand

Thousands of cars, mostly electric vehicles, are waiting for buyers in Germany. Specifically, around six thousand new cars are filling parking spaces at a logistics company, CAT, in Essen. This situation arises from weak demand in the market.

The estimated value of these vehicles exceeds 300 million euros. Many of these cars have been parked for over a year. A CAT employee stated, “I have never seen anything like this in my ten years here.” According to Bild, there are no available parking spaces at CAT in Essen.

The primary reason for the surplus of unsold cars is the declining demand, as noted in the report. So far this year, 2.3 million new cars have been registered in Germany from January to October. This figure shows a slight drop of 0.4% compared to the same period last year, which was already low for Europe’s main car market, according to economist Frank Schwoppe from the Hanover University of Applied Sciences.

CAT attributes the overcrowding of its parking lots to high prices and challenges with electrification. However, this situation benefits CAT financially, as car manufacturers pay more for parking space.

Most of the stored cars come from Volkswagen and Audi, both facing significant challenges. In the first ten months of 2024, approximately 169,000 Audis were registered in Germany, marking a 17.9% decrease compared to the previous year.

As part of cost-cutting measures, Volkswagen plans to close factories in Germany and reduce bonuses and salaries. Negotiations between unions and management have not yet produced results, leading worried workers to prepare for strikes.