German car production and exports rise in March

Germany’s automotive industry recorded a boost in both car production and exports in March, according to new data released by the German Association of the Automotive Industry (VDA). The uptick comes amid a strong rebound in electric vehicle (EV) registrations, although overall market activity still lags behind pre-pandemic levels.

In March, Germany produced 391,300 passenger cars, an increase of 8% compared to the same month in 2024. Over the first quarter of 2025, total car production reached 1.1 million units, marking a 5% rise year-on-year. However, the industry is still grappling with long-term recovery: production levels remain 14% below those of the pre-crisis year 2019.

Exports followed a similar trend. A total of 304,300 new vehicles were shipped abroad in March, 8% more than last year. Year-to-date, 822,400 cars have been exported, a 5% increase from the first quarter of 2024. Despite the gains, export volumes remain nearly 16% lower than in the same period of 2019.

Domestic demand showed renewed strength, particularly for electric vehicles (EVs). New EV registrations surged 46% in March, reaching 69,080 units. Battery electric vehicles (BEVs) rose by 35% to 42,520 units, while plug-in hybrids (PHEVs) soared by 66% to 26,550. In total, 176,800 EVs were registered in the first quarter—a 40% increase year-on-year. EVs now account for 27% of all new car registrations in Germany.

Incoming orders also indicated a brighter outlook. Domestic orders rose 29% in March, while foreign orders grew by 4%. Combined, order volumes were up 7% compared to March 2024. However, on a quarterly basis, total order levels remained flat year-on-year.

Despite these gains, the broader German car market continues to face challenges. Passenger car registrations fell 4% in March to 253,500 units, contributing to a 4% decline in first-quarter registrations (664,600 units total). The market remains roughly 25% below 2019 levels, underscoring the lingering effects of supply chain disruptions, inflationary pressures, and shifting consumer habits.