Electric Vehicles Account for 28.6% of Germany's Market Share, Internal Combustion Engine Vehicles Lead the Top Three
In the heart of Europe, Germany's electric vehicle (EV) market is making significant strides, with battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) combined accounting for approximately 27.8% of new car registrations year-to-date.
The growth is particularly noticeable in the PHEV segment, which nearly doubled its share from 5.7% in 2023 to 10.0% in 2025. BEV production in Germany is also at record highs, with over 635,000 BEVs and 229,000 PHEVs produced in the first half of 2025, representing 40% of total car production in that period.
While internal combustion engine (ICE) vehicles still hold a larger share, with about 42.6% market share in July 2025, this is a significant drop from over 50% the previous year. Forecasts predict ICE sales will fall below 40% by late 2025 and continue downward.
The Volkswagen ID.3 was the best-selling BEV in July, with 2,907 units, and the Volkswagen Group has grown its sales by 4% over the prior three months, taking 43.9% of the German BEV market. Stellantis has also advanced to third place, growing sales by 26% and gaining an additional 0.9% share.
The Ford Puma and Renault 4 are the highest climbers of any new models launched this year, ranking 44th and 47th respectively. The Hyundai Ioniq 9, another June debutant, increased from 6 to 39 units, while the MG S5, which also debuted in June, held its ground with 71 units.
Comparatively, France and the UK show healthy electric demand, but Germany's combined BEV and PHEV share is stronger. France experienced a 3.2% decline in overall car sales recently, but maintained a growing BEV and PHEV market share. The UK, not in the EU but following a broadly similar trajectory, saw a surge in full-electric registrations in early 2025 attributed to policy incentives and tax changes. Projections indicate BEVs are expected to reach around 28% of new car sales by 2026 in the UK, slightly ahead of Germany’s current BEV share of 17.8%, but Germany’s BEV + PHEV combined is higher than that currently.
Germany stands as Europe’s largest car market and electric car production hub, with a robust growth in both BEV and PHEV segments. Challenges remain around infrastructure and energy pricing, but the position as a major EV producer and consumer market is consolidating rapidly, supported by stronger manufacturing output and improving policy incentives.
In other news, headline inflation remains at 2%, ECB interest rates remain at 2.15%, and manufacturing PMI was almost flat at 49.1 points in July. Tesla has lost volume and market share, now occupying 3.0% of the market, while the new Skoda Elroq has consolidated its position in Germany, with its second consecutive month in the top three spots. The Hyundai Inster, a small and affordable model, had a significant move up, ranking 10th in July. BMW Group has grown sales by 24% and gained an additional 1.2% of the market.
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- The growth in Germany's electric vehicle market is reflected in podcast discussions about technology advancements and policy incentives, promoting the adoption of electric-vehicles (EVs) and alternatives to internal combustion engine (ICE) vehicles.
- As demand for electric vehicles continues to grow, newsletters are covering updates on market data, including the production numbers of BEVs and PHEVs, and comparing Germany's EV market share with that of France and the UK.
- Lifestyle choices are shifting towards eco-friendly options, as reflected in the popularity of compact electric vehicles such as the Hyundai Ioniq 9 and the Ford Puma, which have shown significant growth in sales this year.
- Forecasts suggest that by 2026, BEVs are expected to account for a significant percentage of new car sales in both Germany and the UK, highlighting the importance of investments in infrastructure and research for the growth of the electric-vehicle market.
