EVs reach 40% of passenger car production in Germany

Germany’s automotive industry hit a major milestone in 2025, with electric vehicles accounting for a record 40% of all passenger cars produced domestically, according to new data from the German Association of the Automotive Industry (VDA).

The figures underline the rapid shift toward e-mobility, even as overall production, exports and registrations remain well below pre-crisis levels.

For the full year 2025, Germany produced 1.67 million electric passenger cars, a 23% increase compared with 2024. This cements Germany’s position as the second-largest electric vehicle (EV) production hub globally, behind China and ahead of the United States.

While battery-electric vehicles (BEVs) continue to dominate production volumes, growth in 2025 was driven in particular by plug-in hybrid electric vehicles (PHEVs). PHEV output surged 54% to 450,000 units, while BEV production rose 15% to 1.22 million vehicles. The VDA expects momentum to continue in 2026, forecasting a further 6% increase in domestic EV production to 1.76 million units.

“Domestic production of electric cars is at a record level, which impressively and clearly demonstrates that the German automotive industry is resolutely forging ahead with e-mobility and climate-neutral mobility.”

However, Müller warned that sustained progress depends on stronger policy support, including expanded charging infrastructure, grid upgrades, lower electricity costs, better access to critical raw materials, and internationally competitive business conditions. Without these, new incentives for e-mobility risk becoming only “short-lived successes.”

Despite the EV boom, overall passenger car production remains subdued. In January 2026, domestic production totalled 305,900 units, down 9% year-on-year, partly due to one fewer working day compared with January 2025. Output was still 18% below the pre-crisis level of 2019.

Exports in January stood at 225,300 units, an 8% decline compared with the previous year and 22% below 2019 levels.

Order intake painted a mixed picture. Domestic orders rose 4% year-on-year, but foreign orders fell 7%, leaving total orders 5% lower overall than a year earlier.

The German passenger car market continues to lag behind pre-pandemic volumes. In January 2026, new registrations fell 7% year-on-year to around 194,000 vehicles, leaving the market 27% below January 2019 levels.

Electric vehicles, however, continue to gain ground. New EV registrations jumped 23% to 64,500 units, lifting the EV share of new registrations to 33.2%, meaning one in three new cars registered in Germany is now electric. BEV registrations rose 24% to 42,700 units, while PHEV registrations increased 23% to 21,800 units.

The data highlight a clear structural shift in Germany’s automotive sector: electric mobility is becoming mainstream in both production and sales. Yet the broader market recovery remains fragile, with volumes still well below pre-crisis benchmarks and international demand under pressure.