New Electric Vehicle Registrations Drive Passenger Car Market

In June, 377,700 passenger cars were produced in Germany. This represented a 6% increase compared to the same month last year. This trend must be viewed primarily against the backdrop of two additional working days compared to June 2025. So far this year, 2.109mn passenger cars have been manufactured in Germany – 3% fewer than in the corresponding period of the previous year. Consequently, after six months, production remains 15% below 2019 levels. Challenging conditions – specifically high non-wage labor costs and taxes, as well as energy and bureaucratic costs that are high by international standards – continue to place Germany as a business location under increasing pressure.

At 287,700 units, exports in June exceeded the figure for the same month last year by 7%. Since January, 1.605mn passenger cars have been exported – 3% fewer than in the same period last year. Despite growing trade barriers with key partner countries, more than three out of four domestically produced passenger cars were exported over the course of the year.

Domestic orders rose by 23% in June compared to the same month last year. At the same time, orders from abroad were 10% below the previous year's figure. Overall – combining domestic and foreign orders – 6% fewer orders were recorded in June than in June 2025.

In June, the number of passenger car registrations rose by 16% year-on-year to a volume of 296,400 units. This increase must be viewed in the context of two additional working days. A total of 1.484mn units were newly registered in the first half of the year – 6% more than in the same period of the previous year. However, figures remain significantly below the pre-crisis level of 2019. After the first half of the year, the market is trailing that level by around 20%.

Last month, new registrations of electric vehicles (BEV, PHEV, FCEV) rose by 60% to a volume of 116,300 units. The electric vehicle share of total registrations reached 39% – the highest level since the reduction of the environmental bonus at the end of 2022. Specifically, BEV registrations saw above-average growth of 78%, reaching 84,100 units, while new registrations of PHEVs recorded more moderate growth of 26%, totaling 32,200 vehicles.

Given the significant rise in registrations of electric vehicles – particularly battery electric vehicles (BEVs) – throughout the year, we attribute this trend to an interplay of various factors. Key among these are the manufacturers' expanded model ranges and the new EV subsidy scheme available since May 19. The latter drove a shift in May that saw more BEVs registered to private individuals than to companies for the first time since the "environmental bonus" ended in late 2023.

At the same time, however, charging prices in Germany remain too high and urgently need to be lowered to further boost the appeal of e-mobility. We will be monitoring further developments closely.