German automakers are holding their ground against Chinese electric vehicle (EV) manufacturers, according to a recent study by EY. Despite initial concerns, Chinese brands have yet to dominate the German EV market, capturing only 8% market share in Q3 2023.

German brands have surged to 57% market share, up from 40% last year. Tesla maintains a steady 9% slice of the pie. However, the overall EV market has contracted significantly, with new registrations down 45% year-over-year.

EY experts attribute the limited success of Chinese brands to challenges in building trust, brand loyalty, and establishing nationwide sales networks. Meanwhile, German automakers have successfully launched competitive new models. The market remains sluggish following the abrupt end of environmental subsidies, with no signs of an immediate recovery.