German car production slightly down in February

The German automotive industry experienced a slight decline in production and market performance in February 2025, primarily attributed to one fewer working day compared to the same month in the previous year. Despite the decrease, the German Association of the Automotive Industry (VDA) highlighted the notable growth in electric vehicle registrations, indicating a continued shift towards sustainable mobility.

Production and exports

In February, domestic car production reached 361,500 units, marking a 3% decline compared to February 2024. However, cumulative production for the first two months of 2025 reached 698,700 vehicles, reflecting a 3% increase from the same period last year. Despite this improvement, production remains 14% lower than pre-pandemic levels in 2019.

Exports also saw a decline last month. In February, Germany exported 281,200 brand-new cars, a 3% decrease from February 2024. However, year-to-date exports totalled 526,900 vehicles, a 5% increase compared to the same period last year. Despite this growth, export levels remain 17% below those recorded in 2019.

Market demand and orders

The domestic market faced continued challenges, with 7% fewer domestic orders recorded in February 2025 compared to the same month last year. Foreign orders also experienced a decline of nearly 3% year-over-year. In total, domestic and foreign orders combined showed a 3% drop for the month. Over the first two months of 2025, the total decline in orders was recorded at 6% compared to the same period in 2024.

New car registrations

New car registrations in Germany also declined. In February 2025, the number of new passenger car registrations fell by 6% to 203,400 units compared to the same month last year. For the first two months of the year, 411,000 new cars were registered, reflecting a 5% drop from the same period in 2024. Compared to the pre-pandemic year of 2019, new car registrations in the first two months of 2025 were down by 23%, with approximately 120,000 fewer units registered.

Electric vehicle growth

Despite the overall market downturn, the German electric vehicle (EV) segment exhibited substantial growth. In February 2025, new registrations of electric vehicles (including battery-electric vehicles [BEV] and plug-in hybrid electric vehicles [PHEV]) surged by 32% to 55,490 units. BEV registrations alone increased by 31% to 35,950 units, while PHEV registrations rose by 34% to 19,530 vehicles.

Over the first two months of 2025, the German EV market saw a 36% increase, reaching a total volume of 107,700 units. Specifically, BEV registrations grew by 41% to 70,400 units, and the PHEV segment expanded by 29% to 37,200 vehicles. The growth in electric vehicle adoption is partly due to low previous-year figures following the elimination of the environmental bonus, but it also underscores a growing consumer preference for sustainable mobility options.