Cookies utilized by Autovista24 enhance user's browsing experience
The German new-car market is currently experiencing a recession, with overall passenger car sales declining by 4.7% in the first half of 2025. This downturn is largely attributed to economic challenges such as weak foreign demand and high costs in energy-intensive industries.
Despite this recession, there is a notable growth in plug-in hybrid vehicle (PHEV) sales, which increased by over 9% from 2023. On the other hand, battery-electric vehicle (BEV) sales have experienced a sharp 27% decline in market share.
One of the key factors influencing these trends is the economic environment. Germany’s economy is slowly recovering with a projected 0.7% growth in 2025, lower inflation (2.1%), and improving labor market stabilization. However, high energy and financing costs still dampen overall demand for new cars.
Another factor is the shift in vehicle preferences. The spike in PHEV sales despite the BEV market share decline is partly due to the removal of some BEV subsidies, leading to a temporary rebound in internal combustion engine (ICE) vehicle sales, including petrol and diesel vehicles.
Some brands have seen strong growth in the EV segment. For instance, Cupra has experienced a 67.6% growth, positioning itself as an emerging competitor in the EV market. In June 2025, German EV registrations increased by 8.6%, and PHEVs surged by 66.4%.
In March 2025, petrol represented 27.8% of overall registrations, a 10 percentage point drop compared to the same month in 2024. Petrol-powered car registrations decreased by 29.4%, with 70,414 units. On the other hand, PHEV accounted for 10.5% of the new-car market, up 4.4 percentage points compared to one year ago.
Hybrid volumes grew by 10.5% in the first quarter, with 192,265 units. PHEV deliveries surged by 65.8% in March, with 26,553 deliveries, making it the best-performing powertrain in terms of year-on-year percentage growth. Hybrid registrations improved by 11.7% in March 2025, reaching 74,860 units.
Despite the overall decline in new-car registrations, with a total of 664,564 units in the first three months of 2025, the growth in PHEV sales partly offsets the declines in BEV market share. The market's complexity reflects the transition period Germany is undergoing in its move from traditional ICE vehicles to electrified mobility.
[1] Source: Autovista24 [2] Source: Statista [3] Source: German Federal Motor Transport Authority (KBA)
- The decrease in overall new-car sales in Germany is largely due to challenges in the energy-intensive industries and weak foreign demand, but the market for plug-in hybrid vehicles (PHEVs) is experiencing significant growth.
- The shift in vehicle preferences is partly responsible for the growth in PHEV sales, as some consumers are turning to plug-in vehicles due to changes in subsidies and a temporary rebound in internal combustion engine (ICE) vehicle sales.
- Alongside the growth in PHEV sales, there is a notable decline in battery-electric vehicle (BEV) market share, with a sharp drop of 27%.
- Some automotive brands, such as Cupra, have seen strong growth in the electric vehicle (EV) segment, positioning themselves as emerging competitors in the market.
- As Germany transitions from traditional Internal Combustion Engine (ICE) vehicles to electrified mobility, the market's complexity is reflected in the growth in PHEV sales, the decline in BEV market share, and the ongoing shift in consumer preferences for battery- and hybrid-powered vehicles.
