German car production rises in June, reports VDA

Germany’s automotive industry showed signs of resilience in June, with passenger car production increasing for the second consecutive month, according to the latest figures from the German Association of the Automotive Industry (VDA).

The uptick in production comes despite a broader slump in new car registrations, which were skewed by regulatory distortions in 2024. Meanwhile, electric vehicle (EV) sales continued their upward trajectory, providing a bright spot in an otherwise subdued market.

In June, domestic passenger car production reached 359,700 units, a 3% increase year-on-year. This brought total production for the first half of 2025 to nearly 2.17 million units, marking a 4% rise compared to the same period in 2024. Despite this recovery, output remains 13% below pre-crisis levels from 2019, underlining the industry’s ongoing challenges in returning to pre-pandemic volumes.

Exports also performed well in June, with 274,700 cars shipped abroad, up 5% year-on-year. So far this year, German carmakers have exported 1.66 million vehicles, representing a 3% increase from the previous year. However, like production, export volumes remain 10% below 2019 levels.

Incoming orders presented a mixed picture. Domestic orders fell by 8%, suggesting ongoing caution among German consumers. In contrast, foreign demand rose by 5%, lifting total orders for the month 3% above June 2024 levels. Year-to-date, overall orders remain flat compared to the same period last year.

New passenger car registrations fell sharply in June, totalling 256,200 units, a 14% decline year-on-year. However, the drop is largely attributed to an artificial spike in registrations in June 2024, caused by a rush to register vehicles ahead of a new EU type-approval regulation that came into effect in July of that year.

For the first half of 2025, new registrations stood at 1.40 million units, down 5% compared to the same period in 2024. Compared to the pre-pandemic benchmark of 2019, the German car market remains 24% below prior levels, a shortfall of over 446,000 units.

In stark contrast to the overall trend, Germany’s electric vehicle segment continues to grow rapidly. In June, 72,800 EVs were newly registered, a 24% increase year-on-year. This figure includes 47,200 battery electric vehicles (BEVs), up 9%; and 25,600 plug-in hybrids (PHEVs), up a striking 66%.

The momentum extends across the year, with 387,700 electric vehicles registered in the first six months of 2025, a 42% rise over the same period last year. Year-to-date figures show BEV registrations up 35% to 248,700 units, and PHEV registrations up 55% to 138,900 units.

This rapid growth underscores the ongoing shift toward cleaner mobility, supported by product innovation, expanding charging infrastructure, and sustained consumer interest despite economic headwinds.

Germany’s automotive sector appears to be stabilising, with modest growth in production and exports. However, the continued lag behind 2019 levels signals a slow and uneven recovery. The electric vehicle boom remains the industry’s strongest growth engine, even as the traditional combustion engine market faces persistent structural and cyclical challenges.