Rapid Progress in 2025: Steady Surge in Electric Vehicle Adoptions Continues
The German car market has shown a mixed performance in the first half of 2025, with a slight overall decline in registrations, yet significant growth in electric vehicles (EVs) and alternative drives.
New passenger car registrations were down by around 2.4% year-on-year for the first five months, totaling approximately 1,146,596 units. May 2025 saw a slight month-over-month increase of 1.2% to 239,297 units, but June registrations declined 13.8% to 256,193 units.
German brands showed varying trends in May 2025. Volkswagen led the pack with a 5.1% increase in registrations (50,048 units), followed by Mercedes with a 9.9% rise (21,788 units) and BMW with a 9.6% boost (20,354 units). Other brands such as Audi saw a slight decline (-2.6%), and Opel dropped significantly (-22.2%).
In contrast, the EV segment defied the broader market contraction with a strong growth of 33% up to May 2025. Plug-in hybrids also surged, with a 66.4% increase in June alone. EVs and alternative drives thus represent a key growth area. However, Tesla's sales in Germany declined sharply by 58.2% in the first half of 2025 to 8,890 units despite the overall EV market growth.
SUVs remained the strongest segment with a share of 34.2% in June, despite a decrease of -2.8%. In the first half of the year, a total of 1,685,212 vehicles were registered, a decrease of -8.2 percent compared to the same period last year. The number of vehicle trailers registered in the first six months was 134,975, a decrease of 6.5 percent.
Diesel cars were down by 23.2% compared to the same period the previous year, with a share of 15.1%. The number of gasoline cars registered in June decreased by -34.6%, and their share was 28.5%. On the other hand, the number of vehicles powered by liquefied petroleum gas (LPG) decreased by 7.7 percent, with a share of 0.5 percent.
Volkswagen remained the strongest German brand in June 2025 with 18.8% and in the first half of the year with 20.4%. The compact class followed with a decrease of -31.1% and a share of 16.6% in June.
The volume of used vehicle market transactions decreased in June compared to the same month last year, except for buses (+5.1 percent) and motorcycles (+8.0 percent). Alternative drives had positive results in both June and the half-year balance, with electric cars showing an increase of +35.1% in the first six months.
19 new vehicles with fuel cell (hydrogen) powertrains were registered in June. Hybrid powertrains were equipped in 98,940 new vehicles in June, marking a +12.5% increase compared to the same month the previous year.
New registrations for commercial holders decreased by -15.5% and accounted for 67.0% of the total. Commercial vehicles faced a decline in demand, with all segments showing double-digit decreases in registrations. The largest decrease was in trucks (-33.3 percent), followed by tractor units (-26.6 percent).
In summary, the German car market in early 2025 saw a slight overall decline in registrations, dominated by Volkswagen and other German brands, with substantial growth in electric vehicles and plug-in hybrids. Tesla's sales notably dropped despite the EV market expansion. Data on commercial vehicles, motorcycles, trailers, and change of ownership in the period was not detailed in the sources. The broader economic environment suggested moderate recovery which may support upcoming automotive demand.
Technology played a significant role in the German car market in early 2025, with electric vehicles (EVs) and alternative drives showing substantial growth. For instance, the EV segment defied the broader market contraction with a strong growth of 33% up to May 2025. Moreover, hybrid powertrains were equipped in 98,940 new vehicles in June, marking a +12.5% increase compared to the same month the previous year, indicating the increasing influence of technology in the automotive industry.
