Domestic passenger car production in Germany reached 400,800 units in March. Compared to the same month last year, this represents an increase of 3%. This figure is positively influenced by the fact that there was one more working day in March this year than in March of last year. In the first quarter, just under 1.1mn passenger cars were manufactured in Germany, 2% fewer than in the corresponding period last year. However, production remains significantly below pre-crisis levels: After the first quarter, production is 16% below the level of 2019.

Exports rose by 3% year-on-year in March, reaching 310,700 units. Since January, 799,500 passenger cars have been exported, 2% fewer than in the same period last year. After the first quarter, exports are 18% below the level of 2019.

Domestic orders increased by 7% in March compared to the same month last year. At the same time, foreign orders were 3% lower than the previous year. Overall, taking both domestic and foreign orders into account, 2% fewer orders were registered in March than in the same month last year.

New car registrations rise by double digits

In March, significantly more vehicles were newly registered on the German passenger car market than in the same month last year: Compared to March 2025, the number of passenger car registrations rose by 16% to a volume of 294,200 units. In addition to the weak level of the previous year, the aforementioned extra working day in March of this year supported the growth in new registrations. In the first quarter of the year, a total of 699,400 units were newly registered, 5% more than in the corresponding period of the previous year. However, the pre-crisis level of 2019 is still significantly undercut – after the first quarter, the market is almost 21% below that level.

In the past month, new registrations of electric vehicles (BEVs, PHEVs, FCEVs) rose by 46% to a volume of 100,700 units. The share of electric vehicles in total registrations thus reached 34%, meaning that roughly one in three new registrations in the past month was an electric car. Specifically, registrations of purely battery-electric vehicles (BEVs) increased by an above-average 66% to 70,700 units. New registrations of plug-in hybrids (PHEVs) saw more moderate growth of 13% to 30,000 vehicles. In the first quarter of this year, the electric car market reached a volume of 235,800 units, an increase of 33% compared to the first three months of the previous year. This translates to a 41% increase in new BEV registrations for the year, reaching 159,600 units. The PHEV segment grew by 19% in the first quarter of the year, reaching a volume of 76,100 vehicles to date.

No measurable impact of the Iran war on electric vehicle registrations

The March data does not reveal a measurable impact of the Iran war on new electric vehicle registrations, as there is typically a delay of several months between ordering and registration. Therefore, the effects of the war in the Middle East cannot yet be seen in the market. Whether the increased energy and fuel prices resulting from the conflict will trigger a demand boost for electric vehicles in the second half of the year remains to be seen and also depends on the further course of the conflict.

It remains to be seen how the conflict, and in particular the high oil and gas prices, will affect the overall economy. This, in turn, impacts demand for passenger cars. The VDA currently continues to project a market volume of 2.9mn passenger cars for the current year, representing an increase of 2% compared to the previous year. The VDA also continues to expect a 17% increase in electric vehicle sales to 1mn passenger cars. We will closely monitor further developments.