Over 635 thousand electric vehicles manufactured in Germany during the first half of 2025
In the first half of 2023, Germany witnessed a significant surge in electric vehicle (EV) production, with a record 864,000 electric passenger cars manufactured, marking a 5% increase compared to the same period in 2022 [1]. However, the German passenger car market remains below the 2019 level, with registrations in the first seven months being approximately 24% lower, amounting to around 514,200 units [2].
A notable trend in the EV market is the increased adoption of battery electric vehicles (BEVs) and plug-in hybrids (PHEVs). Year-to-date, BEV new registrations increased by 38% to 297,300 units, while PHEV new registrations saw a growth of around 84% to 143,900 units [2]. In July 2023, BEV registrations rose by 58% to 48,600 units, and PHEV registrations grew by 84% to 27,200 vehicles [2]. The production of BEVs and PHEVs in the first half of 2023 amounted to 635,000 and 229,000 units, respectively, both new record values [1].
The growth in the EV market continued into 2025, with July registrations increasing by 66% to 75,800 units [3]. In the same month, 347,100 units of passenger cars were domestically produced in Germany, a 9% increase compared to the same month in 2022 [2]. Exports of new passenger cars from German production plants in July 2023 were 283,500, a 7% increase compared to the same month in 2022 [2]. Since January 2023, 1.9 million new passenger cars have been exported, a 3% increase compared to the same period in 2022, but exports are currently around 10% below the pre-crisis level of 2019 after seven months [2].
Despite these positive developments, the current framework conditions for EV consumers in Germany include a mixture of tax incentives, production growth, and challenges in adoption. To further boost consumer adoption, improvements in consumer information, charging infrastructure accessibility, and stable purchase incentives are being called for [1][2][3][4].
The German government offers significant tax advantages for BEVs, with the benefit-in-kind (BIK) taxation rate for BEVs reduced to 0.25% of the gross list price, and amounts exceeding €100,000 taxed at 0.5% [1]. Plug-in hybrids (PHEVs) have a higher BIK rate of 0.5% with certain restrictions [1]. Additionally, companies purchasing BEVs between July 2025 and December 2027 can claim accelerated depreciation, writing off 75% of the vehicle cost in the acquisition year [1].
Research from the KfW Energy Transition Barometer 2025 highlights the need to remove information deficits about the safety and performance of EVs to increase consumer confidence [3]. Simplifying access to charging facilities in apartment buildings and creating incentives for time-optimized charging (e.g., charging during off-peak renewable energy availability) are also urged to ease EV adoption [3].
The abrupt termination of the government’s purchase subsidy program in 2023 led to a collapse in EV sales; however, the current government has promised to introduce new incentives, which remain important for consumer uptake [2][3][4]. Germany is Europe’s leading EV production hub and the world’s second-largest e-car production location, manufacturing a record 635,000 BEVs in the first half of 2025 [2]. Despite government subsidy interruptions in 2023 causing temporary drops in sales, new EV registrations continued to rise to 18.4% of new car registrations as of July 2025 [2].
In conclusion, Germany has established a strong incentive framework focused on corporate users and increased EV production, but to further boost consumer adoption, improvements in consumer information, charging infrastructure accessibility, and stable purchase incentives are called for [1][2][3][4].
[1] German Association of the Automotive Industry (VDA) [2] German Federal Motor Transport Authority (KBA) [3] KfW Energy Transition Barometer 2025 [4] German Federal Ministry for Economic Affairs and Climate Action (BMWK)
- The growth in electric vehicle (EV) production in Germany has not only extended to sports cars but also technology-driven vehicles, like battery electric vehicles (BEVs) and plug-in hybrids (PHEVs), with the latter experiencing a remarkable 84% increase in new registrations year-to-date.
- Amidst the ongoing advancements in EV technology, sports enthusiasts in Germany are encouraged to explore the expanding range of electrified sports vehicles, given the attractive tax incentives, improved charging infrastructure, and growing consumer confidence towards EVs.
