Germany’s automotive industry has hit the ground running in 2025 with a significant surge in passenger car production. According to the VDA – German Association of the Automotive Industry, domestic passenger car production in January rose by 13% to 340,800 units, marking the highest January figure since 2020. This growth is especially notable given that there was one fewer working day compared to the previous year. However, the industry still faces a 9% gap compared to the pre-crisis year of 2019.
The past year saw record-breaking domestic electric vehicle production, with over 1 million battery electric vehicles (BEVs) produced in Germany. In 2024, electric car production increased by 7% to reach an impressive 1.35 million units, meaning that one in three passenger cars manufactured in Germany was electrically powered.
The momentum came primarily from BEVs, whose production surged by 11% to 1.06 million units. On the other hand, the production of plug-in hybrids fell by 6% to 0.29 million vehicles. Looking ahead, the VDA expects a further 24% increase in e-car production this year, potentially reaching 1.67 million units.
Passenger car exports also saw a remarkable rise in January, increasing by 19% to 254,200 units. The export ratio climbed by 4 percentage points to 75% compared to the same month last year, underscoring the crucial role of foreign trade for the German automotive industry. Despite this growth, deliveries from German plants abroad remain 12% below pre-crisis levels.
Domestic orders received by German manufacturers continued their upward trend, increasing for the fifth consecutive month. January saw a 21% rise in domestic orders compared to the previous year, although this figure is still significantly lower than pre-crisis levels.
New car registrations in January fell by 3% year-on-year to 207,600 units, widening the gap to the pre-crisis level of January 2019 to 22%. The weak demand in the German passenger car market is attributed to the general economic situation, which often deters consumers from making major investments.
However, the trend in new registrations of electric cars was very positive, with a 42% increase to 52,220 units. Electric vehicles accounted for over 25% of total new registrations, the highest level since the abolition of the environmental bonus in December 2023. BEVs led this surge, with new registrations jumping by 54% to 34,500 units. Plug-in hybrids also saw growth, with a 23% increase to 17,710 new registrations in January.
