Hamburg, Germany: The EPDM Rubber market in Germany remained stable in the first half of September 2023, which was unexpected given the automotive industry's strong performance driven by a significant increase in Electric Vehicle (EV) sales. August 2023 was a crucial month for the German automobile market, witnessing a remarkable 37.3% rise in new passenger vehicle sales. However, the standout performer was the electric vehicle sector, which experienced an astonishing year-on-year growth of 171%. This surge in EV registrations was primarily due to the impending deadline for business buyer incentives, set to expire on September 1st.

Tesla, a major player in the electric vehicle market, took advantage of this opportunity by offering additional discounts for corporate vehicle registrations to attract buyers before the incentive deadline. This strategic move resulted in a combined 30% price reduction for the Model 3 and a 25% price cut for the Model Y when combined with government incentives, making Tesla EVs more appealing to German business car buyers.

Conversely, the EPDM Rubber industry witnessed stagnancy in prices. This steadiness in EPDM Rubber prices can be partly attributed to the slowdown in the Eurozone's construction sector. August saw the most substantial decline in the sector's performance for the year, driven by reduced demand in Germany and increased costs of raw materials. Despite the decreased need for construction materials, the Purchasing Managers' Index (PMI) for the Eurozone construction sector only dipped slightly from 43.5 to 43.4 in August. This dip indicates a noticeable slowing down in construction activity, which had a ripple effect on the demand for EPDM Rubber in Germany, impacting the overall market for this product.

The decrease in construction activity is concerning for both the construction industry and the EPDM Rubber market. As construction projects scale back, the demand for materials like EPDM Rubber, which is extensively used in construction for sealing, insulation, and various other applications, also decreases. In summary, while the German automobile market experienced a surge in EV sales in August, with Tesla leading the way with strategic discounts, the EPDM Rubber market faced unexpected challenges. The sharp decline in construction activity, particularly in Germany, along with rising raw material costs, countered the rise in demand from the automotive sector and contributed to stability in EPDM Rubber prices. The EPDM Rubber industry is now eagerly waiting for signs of recovery in the construction sector to help boost prices and demand for this versatile material.