Germany’s Automotive Industry Sets New Electric Mobility Milestones
Germany continues to solidify its position as a global leader in electric vehicle manufacturing. The latest data from the German Association of the Automotive Industry (VDA) for July 2025 highlights a record-breaking first half of the year in electric car production. This momentum reflects the ongoing shift within the automotive sector towards sustainable mobility solutions amid increasing demand for cleaner transportation. Despite challenges such as supply chain constraints and the legacy impact of the 2019 pre-crisis production levels, Germany’s car industry is advancing rapidly in electric vehicle output and market penetration.
Strong Production Growth Amid Ongoing Challenges
In July 2025 alone, Germany produced 347,100 passenger cars, marking a 9% increase compared to July 2024. After seven months, total production reached 2.5 million vehicles, a 5% rise year-on-year. Yet, this output remains 12% below the pre-pandemic 2019 levels, indicating the broader challenges the industry faces in fully recovering from past disruptions.
Electric vehicle manufacturing is at the forefront of growth. In the first half of 2025, Germany produced 864,000 electric cars, including 635,000 battery-electric vehicles (BEVs) and 229,000 plug-in hybrid electric vehicles (PHEVs), both setting new records. Electric cars now represent 40% of domestic car production — a significant jump from 30% in the same period last year. The VDA projects approximately 1.7 million electric cars will be produced domestically for the entire year, affirming Germany’s critical role as Europe’s leading e-car production hub and the world’s second-largest producer of electric vehicles.
Market Demand and Export Trends
Export activity also was robust in July 2025. Germany exported 283,500 new cars, a 7% increase versus the previous year. Year-to-date exports reached 1.9 million cars, up 3% year-on-year, though still roughly 10% below 2019 levels. Domestic new passenger car orders saw a modest rise of 2% in July compared to last year, while foreign orders dipped slightly by 1%. Overall, combined domestic and foreign orders in July were down 1% year-on-year, with total orders for the first seven months remaining stable compared to 2024.
Accelerated Growth in New Electric Vehicle Registrations
The German passenger vehicle market registered 264,800 new cars in July 2025, an 11% increase year-over-year. However, cumulative registrations over seven months were down 2%, underscoring ongoing recovery challenges relative to pre-pandemic figures. Importantly, the electric car segment (including BEVs, PHEVs, and fuel cell electric vehicles, FCEVs) witnessed significant growth. New EV registrations soared 66% in July to 75,800 units, driving year-to-date growth to 45% with a total of 463,500 new electric vehicles registered.
Breaking this down further:
BEV registrations increased by 58% in July to 48,600 units, with a 38% rise year-to-date totaling 297,300 units.
PHEV registrations surged 84% in July to 27,200 units and grew 59% year-to-date, reaching 166,100 vehicles.
This robust demand highlights consumers’ rapidly increasing preference for electric mobility solutions fueled by technological improvements, expanding charging infrastructure, and regulatory incentives.
Outlook and Industry Perspectives
VDA President Hildegard Müller emphasized Germany’s growing stature as a central e-car production hub, currently the world’s second-largest. However, she highlighted urgent needs for improved consumer support, such as expanding public charging infrastructure, enhancing power grid capacity, and reducing electricity taxes. Without these measures, the transition to electric mobility risks slowing, potentially missing key sustainability targets. The continued rise in EV production and registrations indicates strong momentum, but strategic policy and infrastructure initiatives remain crucial to sustain and accelerate growth.
