Surprising turnaround in the electric car market: German car manufacturers take the lead – Electromobility in transition – Creative image: Xpert.Digital
German car manufacturers have completely reclaimed the top ten electric car spots for the first time.
Historic breakthrough: All ten most popular electric cars come from Germany
After months of crisis, the German automotive industry is experiencing a remarkable upswing in the field of electromobility. The latest figures from the Federal Motor Transport Authority (KBA) for the period from January to May 2025 reveal a surprising development: For the first time in the history of the German automotive market, German manufacturers and their subsidiaries occupy the entire top ten spots in new electric vehicle registrations. This development marks a significant turning point in a period previously characterized by economic challenges, plummeting sales figures, and general consumer reluctance.
The automotive industry in Germany has been undergoing a profound transformation for some time. The transition from conventional combustion engines to electric drives presents manufacturers with enormous challenges. High investments in new technologies, production conversions, and the establishment of new supply chains are putting a strain on companies' finances. At the same time, the industry is struggling with a weakening economy, rising production costs, and increasingly intense global competition, particularly from Chinese manufacturers.
The VW Group dominates the top spots
Three Volkswagen models top the new car registration statistics. The VW ID.7, the flagship of the electric ID family, leads the ranking with an impressive 15,615 new registrations. This model has recorded phenomenal growth of 993 percent compared to the same period last year. Since its market launch, the ID.7 has established itself as a popular choice in the upper mid-range segment and impresses with its combination of range, comfort, and state-of-the-art technology.
Second and third place are occupied by other models from the ID family: The ID.4, together with its coupé variant ID.5, achieved 12,717 new registrations (an increase of 37 percent), while the more compact ID.3 took third place with 12,101 units and a growth of 74 percent. These figures underscore the Volkswagen Group's successful electric strategy, which is consistently focused on expanding its electric model range.
The Volkswagen Group's dominance continues in the following rankings. The Škoda Enyaq, an electric SUV based on the same MEB platform as the ID models, achieves fourth place with 11,051 new registrations, representing growth of 51 percent. The sportily positioned Cupra Born completes the top five with 8,585 units and a remarkable increase of 90 percent compared to the same period last year.
German premium manufacturers with a strong presence
German premium manufacturers BMW and Mercedes-Benz are also strongly represented in the top ten. The BMW X1, available with both conventional and electric powertrains, ranks sixth with 8,510 new registrations, representing growth of 40 percent. The Mercedes E-Class follows in seventh place with 8,036 units, showing a slight decline of 2 percent – the only negative figure in the top ten.
The BMW 5 Series follows with 7,982 new registrations and an impressive growth of 105 percent. In ninth place is the Škoda Elroq, a new electric compact SUV that has only been on the market since January 2025 and has already recorded 6,957 new registrations. The top ten is rounded out by the Audi A6 e-tron, which takes tenth place with 6,287 units and a spectacular growth of 247 percent.
Tesla and Chinese manufacturers are losing ground
Particularly noteworthy in this development is the significant decline at Tesla. The American electric car pioneer, which long dominated the European and German markets, now finds itself in 18th place with its best-selling Model Y. Tesla's sales figures have plummeted by a dramatic 62 percent compared to the same period last year. This development marks a significant turning point in the competition for dominance in the electric car market.
Even Chinese manufacturers like BYD, which enjoy enormous success in their home market and are expanding globally, failed to secure a place among the top 20 new car registrations in Germany. Despite intensive efforts to gain a foothold in the European market, sales figures for Chinese electric cars in Germany have so far fallen short of expectations. While BYD sold a total of 2,791 vehicles in Germany between January and April 2025, representing a remarkable increase of 385 percent compared to the previous year, this is not yet enough to place it among the best-selling electric cars.
Technological innovations as the key to success
The success of German manufacturers is based on continuous innovation and the consistent development of their electric vehicles. The VW ID.7, the most successful electric model in Germany, impresses with a range of up to 700 kilometers according to the WLTP standard and state-of-the-art technology. The vehicle offers not only impressive electric performance, but also a well-thought-out overall concept with generous interior space and innovative comfort features.
The Škoda Elroq, one of the newest models in the top ten, also demonstrates the technological expertise of the German automotive industry. This compact SUV is based on Volkswagen AG's modular electric drive matrix (MEB) and is offered in various performance levels. The most powerful version, the Elroq RS, boasts a system output of 250 kW (340 hp) and accelerates from 0 to 100 km/h in just 5.4 seconds. With a WLTP range of up to 580 kilometers and a maximum charging capacity of 185 kW, the Elroq sets new standards in its segment.
The Audi A6 e-tron, one of the fastest-growing models with a growth rate of 247 percent, is based on the new Premium Platform Electric (PPE) and offers super-fast charging thanks to 800-volt technology and a range of more than 750 kilometers. These technological advances are making German electric vehicles increasingly suitable for everyday use and attractive to a broader customer base.
Challenges despite positive development
Despite the positive developments with top-of-the-line models, the overall market for electric vehicles in Germany remains strained. The discontinuation of the government purchase incentive at the end of 2023 led to a noticeable drop in demand. Originally, electric car buyers were to receive a subsidy of up to €4,500 until the end of 2024, but due to budgetary constraints, the program was terminated prematurely. Industry experts subsequently feared a decline of up to 200,000 electric car sales in Germany for 2024.
Another obstacle to the wider acceptance of electric vehicles remains the comparatively high purchase price. Without government subsidies, electric cars are significantly more expensive for many potential buyers than comparable models with combustion engines. In this context, the ADAC (German Automobile Club) criticized the fact that only three electric vehicles under €30,000 are available on the German market, which limits their accessibility to broader segments of the population.
Charging infrastructure remains a critical factor for the success of electromobility. Although the network of charging stations is continuously expanding, gaps still exist, particularly in rural areas. Furthermore, charging speeds and billing systems vary considerably, which can negatively impact the user experience.
The role of the automotive industry for Germany as a business location
The German automotive industry is a central pillar of the German economy and a major employer. According to Hildegard Müller, President of the German Association of the Automotive Industry (VDA), Germany is the “European heartland of electric vehicle production and the second most important e-mobility location worldwide.” Maintaining and expanding this position is crucial for the future viability of Germany as a business location.
Hildegard Müller, born in Rheine in 1967, has headed the VDA since February 2020. With her extensive experience in politics and business – including serving as Minister of State in the Federal Chancellery and Chair of the Executive Board of the German Association of Energy and Water Industries – she represents the interests of the German automotive industry during a time of profound change. Her expertise is particularly valuable in the current phase, in which the industry faces enormous challenges.
The shift towards electromobility has far-reaching implications for employment in the automotive industry. Since electric vehicles have less complex powertrains and require fewer production steps, experts predict inevitable job losses. This process has already begun: major suppliers such as Bosch, ZF Friedrichshafen, and Continental have announced plans to cut tens of thousands of jobs.
Global competition and geopolitical challenges
The German automotive industry faces intense global competition, particularly from manufacturers in China and the USA. Chinese companies like BYD have already taken the lead in electric vehicles in their home market and are now increasingly pushing into the European market. BYD has expanded its model range in Germany and, in addition to the Atto 3 and Tang SUVs, now also offers the Atto 2 compact SUV, developed specifically for Europe, which is available from €29,990 after discounts.
The geopolitical situation and potential trade conflicts represent further risk factors. Both the US and China could impose tariffs on German car imports, affecting several hundred thousand vehicles manufactured in Germany. These uncertainties complicate long-term planning and investment decisions for companies.
At the same time, the transformation to electromobility also offers opportunities for the German automotive industry. The development of new technologies such as solid-state batteries or wheel hub motors could lead to competitive advantages. There are also promising approaches in the field of autonomous driving: Mercedes received approval at the end of 2024 to offer its Autobahn Pilot system at speeds up to 95 km/h, making it, along with BMW, one of the first car manufacturers to offer a self-driving system on German highways.
Future prospects and strategies
For the future of the German automotive industry, finding the right balance between traditional strengths and innovative technologies will be crucial. Manufacturers must continue to invest in the development of more efficient and cost-effective electric vehicles to appeal to a broader customer base. At the same time, they must adapt their production capacities and develop new business models to meet the changing market conditions.
The German Association of the Automotive Industry (VDA) anticipates that around 666,000 new electric cars will be registered in Germany in 2025, representing a 75 percent increase compared to the previous year. For "electric passenger cars," a category the association defines as encompassing both battery-electric vehicles and plug-in hybrids, a 53 percent increase to approximately 873,000 new registrations is expected. These forecasts indicate positive development, even though the overall market, with an expected 2.8 million new registrations, would still be about a quarter below the level of the pre-crisis year of 2019.
To meet the stricter CO2 fleet emission limits from 2025 onwards and avoid penalties, an electric vehicle share of around a quarter of total sales is generally considered necessary. With a projected share of 23.8 percent, this target would be almost achieved. However, this share must be reached not only in Germany but across Europe, which further increases the challenge.
Model offensive and pricing strategies
To further boost sales of electric vehicles, German manufacturers are relying on a broad model offensive and adjusted pricing strategies. Experts expect the prices of combustion engine and electric cars to converge by 2025, which, however, could negatively impact the profits of the companies and their suppliers, as electric cars are less profitable than combustion engine vehicles due to the expensive batteries.
Volkswagen already offers a wide range of electric vehicles with its ID family, covering various market segments. The ID.3, as a compact model, appeals to a broad customer base, while the ID.4 and ID.5 serve the growing SUV segment. With the ID.7, VW now also offers an electric alternative in the upper mid-range segment, which is particularly attractive to business customers and frequent drivers.
The group's subsidiaries Škoda, Cupra, and Audi are also continuously expanding their range of electric vehicles. The Škoda Elroq, a compact electric SUV that has only been on the market since January 2025, has already established itself as a successful model. With a range of up to 580 kilometers and various performance levels, it offers an attractive alternative to conventionally powered SUVs.
The Audi A6 e-tron, based on the new Premium Platform Electric (PPE), sets new standards for fast charging with its 800-volt technology. With a maximum charging capacity of 270 kW, the batteries can be recharged to 80 percent in approximately 25 minutes. These technological advancements help to overcome one of the main obstacles to the acceptance of electric vehicles – charging time.
A turning point for the German automotive industry
The latest new vehicle registration figures mark a significant turning point for the German automotive industry. After years of uncertainty and challenges, the success of electric vehicles demonstrates that German manufacturers are able to adapt successfully to changing market conditions and compete with international rivals.
The dominance of German brands in the top ten of new electric car registrations is a clear signal of the industry's innovative strength and adaptability. The success of the Volkswagen Group, which holds a leading position in the electric car market with its various brands and models, is particularly noteworthy.
Nevertheless, significant challenges remain. The phasing out of government subsidies, the ongoing economic slowdown, and intense global competition necessitate continuous adjustments and innovations. The transformation of the automotive industry will have far-reaching effects on employment, production structures, and business models.
Looking ahead, it will be crucial for German manufacturers to further expand their technological leadership while simultaneously offering more affordable electric vehicles to a broader customer base. Only in this way can the German automotive industry secure its position as the "European heartland of electric car production" in the long term and successfully manage the transition to sustainable mobility.
The current figures give cause for cautious optimism. They show that German manufacturers have embraced the challenges of electromobility and are on the right track to maintain their leading position in the global automotive industry in the age of electric vehicles. The success of German electric cars is not only important for the companies themselves, but also for Germany as a business location and the thousands of jobs that depend directly or indirectly on the automotive industry.
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