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Germany's Car Market Grows 1.4%, EVs Surge 43%

1/8/2026

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Summary

Story summary

In 2025, Germany's new-car market grew 1.4% to 2,857,591 registrations.
Electric vehicles contributed to the rebound as EV registrations rose to 545,142 units, up 43.2%.
Internal combustion engine models fell 20.5%.
Tesla's sales in Germany fell 48%, while BYD's sales surged more than 12-fold.
Looking ahead, experts expect 2026 new-car registrations to rise 3.5% to 4% year over year, driven by new EV incentives and expanding charging infrastructure.

History

Historical Context

Germany's automotive industry has faced significant challenges, particularly during the COVID-19 pandemic in 2020, when new-car registrations fell by 19% to 2.9 million units. In response, the government introduced a €5,000 incentive for electric vehicles, resulting in a 200% increase in EV sales. This shift towards electric mobility aligns with Germany's broader Energiewende initiative, aiming for substantial greenhouse gas reductions by 2050.

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Story summary

In 2025, Germany's new-car market grew 1.4% to 2,857,591 registrations.
Electric vehicles contributed to the rebound as EV registrations rose to 545,142 units, up 43.2%.
Internal combustion engine models fell 20.5%.
Tesla's sales in Germany fell 48%, while BYD's sales surged more than 12-fold.
Looking ahead, experts expect 2026 new-car registrations to rise 3.5% to 4% year over year, driven by new EV incentives and expanding charging infrastructure.

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