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In a significant shift for the German automotive industry, battery-electric vehicle (BEV) registrations experienced a surge in January 2025. This marks the first double-digit improvement for BEVs since January 2024.
The VDA, an industry body, has been vocal about the importance of renewable fuels and the need for a supportive framework to meet fleet targets in 2030 and 2035. This push for electrification comes as the surge in BEV registrations was influenced by a combination of factors, including record-high domestic production capacity, improved market incentives, and a transition in automotive industry dynamics.
Germany solidified its position as Europe's leading electric car production hub, enabling a better supply of BEVs and plug-in hybrid electric vehicles (PHEVs) to meet growing demand. The first half of 2025 saw a significant increase in PHEV registrations, with a 55.1% rise in Germany, contributing to the overall growth in electric vehicle registrations. Domestic production of electric cars hit record levels in H1 2025, with 864,000 electric cars produced—635,000 of which were purely battery electric, marking a production share of 40%, up from 30% the previous year.
The strong growth in new BEV registrations was due in part to the sudden withdrawal of incentives for electric vehicles in December 2023, causing a drop in deliveries during January 2024. Additionally, the tightening of EU CO fleet limits for 2025, with each carmaker having its own CO emissions threshold to meet, also played a role in the surge.
However, the overall new car registrations in Germany in the same period saw a slight decline (-1.9% in H1 2025), signaling ongoing market challenges and a complex transition phase for the conventional internal combustion engine (ICE) vehicle segment. While BEVs and PHEVs grew significantly, the broader new car market dealt with stagnation or contraction from traditional powertrains.
The European Commission is currently holding a strategic dialogue with car and van manufacturers on the 2025 CO limits. The VDA, in particular, is advocating for more openness regarding the EU's ban on internal-combustion engine sales from 2035. The organisation also believes the EU's ban should include strengthening the role of plug-in hybrids (PHEVs) beyond 2035.
The ZDK, another key player in the German automotive industry, sees charging infrastructure as a decisive factor for the success of EVs. The political goal of reaching one million charging points in Germany in 2030 is becoming out of reach, according to the ZDK, and an earlier revision of the EU COfleet limits should consider the expansion of the charging infrastructure.
Consumer confidence needs to be strengthened, particularly through a suitable charging infrastructure, according to the VDA. The decline in new car registrations in January 2025 marked the country's lowest delivery total since August 2024. Private deliveries grew by 9.7% in January 2025, accounting for 33% of the total volume, up from 29.2%.
In summary, while Germany experienced a sharp increase in battery-electric vehicle registrations in early 2025 driven by record production and growing consumer demand, the total new car market faced a modest downturn reflecting the broader automotive sector’s ongoing transformation and balancing of new and legacy vehicle technologies.
The VDA advocates for a supportive framework to meet fleet targets, as the rise in electric vehicle (EV) registrations, such as battery-electric vehicles (BEVs), is influenced by increased domestic production, enhanced market incentives, and shifts in the automotive industry.
Despite Germany's lead in electric car production and the surge in BEV registrations, the overall new car market faces stagnation or contraction from traditional powertrains like internal combustion engines (ICE), demonstrating the complex transition phase the industry is undergoing.
