German new-car market teetering towards growth as EVs in spotlight
12 May 2025
New-car registrations in Germany fell by a narrow margin during April. On the upside, electric vehicles (EVs) drove volumes. Meanwhile, will the new coalition government help the country’s automotive market? Autovista24 journalist Tom Hooker reviews the figures.
Germany’s new-car market dropped by 0.2% year on year in April, according to the latest data from the KBA. A total of 242,704 registrations were recorded. This equated to a difference of just 398 units year on year.
The result marked the country’s 10th consecutive month of delivery declines. However, it was still the market’s best performance since June 2024, which was the last month to see growth. Furthermore, last month had 20 working days, one fewer than April 2024.
Commercial deliveries fell by 0.7% in April and took a 66.4% market share. Meanwhile, registrations to private customers increased by 1.1% and accounted for 33.6% of overall volumes.
‘New-car deliveries fell again in April, resulting in a year-on-year decline of 3.3% in the first four months of 2025,’ explained Robert Madas, Autovista Group’s regional head of valuations. This equated to a total of 907,268 registrations in the year to date, a drop of 30,619 units compared to the same period last year.
‘The overall downward trend in new registrations is problematic for the trade,’ stated ZDK vice president Thomas Peckruhn.
Surging BEV market
Battery-electric vehicle (BEV) volumes surged by 53.5% in April, reaching 45,535 deliveries. This was the technology’s highest monthly volume since December 2023, when private incentives ended for BEVs.
The result extended the current double-digit growth streak for BEVs, which started at the beginning of this year. It also matched January’s year-on-year improvement, which was the powertrain’s biggest rise since August 2023. This was another month influenced by the end of subsidies.
Excluding all-electric vehicles from the overall market figure would have resulted in a steeper decline of 7.6%. BEVs captured 18.8% of total new-car registrations, up 6.6 percentage points (pp) year on year. This was also its highest market share since December 2023.
‘A total of 158,503 BEVs were newly registered from January to April, which corresponded to a market share of 17.5%. Compared to the previous year, this was an increase of 42.8%. However, new BEV registrations fell massively in the first months of 2024 after the expiry of the state subsidy,’ highlighted Madas.
In comparison, the technology recorded a drop of 10.8% from January to April 2024. In this period, it accounted for 11.8% of new-car volumes.
PHEV perfection
Plug-in hybrids (PHEVs) were the best-performing powertrain in April, enjoying a 60.7% surge to reach 24,317 deliveries. This marked its seventh consecutive month of growth, with the most recent four double-digit increases. The technology represented 10% of overall volumes, an improvement of 3.8pp compared to April 2024.
In the year to date, PHEVs saw registrations rise by 46.6%, with 88,116 units. It took a 9.7% market share, up from 6.4%.
Combining BEV and PHEV registrations, the EV market increased by 55.9% last month, with 69,852 deliveries. This was the biggest year-on-year plug-in growth since August 2023 and the highest monthly volume since December 2023. The result also marks four months of double-digit growth for the powertrain grouping.
Excluding EVs from the overall new-car market would have resulted in a 12.8% decline. Plug-ins made up 28.8% of total registrations, the grouping’s greatest share since December 2023 and a year-on-year increase of 10.4pp.
In the first four months of 2025, EV volumes surged 44.1%, reaching 246,619 deliveries. This was a gain of 75,494 units compared to the same period one year ago. Plug-ins captured 27.2% of the market, up from 18.2%.
Government’s unprecedented setback
In May, the German government required two rounds of voting to confirm Friedrich Merz as the new chancellor. This was reported by multiple publications, including the Wall Street Journal. An unprecedented setback in the first round meant he failed to secure an absolute majority in the Bundestag.
As written by the Financial Times, this failure in the initial round marked the first time since the formation of the Federal Republic that a chancellor candidate did not receive a majority vote on the first attempt.
Despite the uncertain start, the nation’s automotive industry bodies welcomed the appointment. They went on to outline what changes are urgently needed in the automotive sector.
‘We congratulate the new Chancellor Friedrich Merz! We expect the governing coalition to quickly tackle the urgent structural reforms that are necessary,’ said ZDK president Arne Joswig.
‘In particular, the reduction of bureaucracy, the reduction of the tax burden on companies and the reduction of the persistently high energy prices. One thing is clear, the companies in the automotive industry finally need more entrepreneurial air to breathe again,’ he commented.
New EV purchase incentives?
Last month, the new government announced plans to introduce purchase incentives for EVs, according to Reuters. This may include PHEVs and models fitted with range extenders to boost an EV’s battery. The coalition also promised tax discounts for company cars, including an exemption from vehicle tax for EVs to last until 2035.
However, no start date or timeline has been announced for these measures. ‘This ambiguity unsettles potential buyers at a time when a growth trend in new registrations of BEVs is emerging,’ the ZDK stated.
The overall new-car market is the closest it has been to growth in months. New incentives could help tip registration figures into the positive.
‘The lack of clarity has continued to lead to uncertainty and a reluctance to buy among EV customers in recent months. However, slightly positive signals in new registrations and increased incoming orders in April gave reason to hope that the market could recover somewhat,’ outlined VDIK president Imelda Labbé.
‘The future government coalition must now quickly follow up its vision of ramping up electric mobility with action. We now finally need clarity for prospective buyers concerning the planned subsidy measures,’ she commented.
‘Chancellor Merz must anchor the subsidy for EVs and the reduction of electricity prices in his immediate action programme in terms of content and time. Even before the summer break, it should be clear to every car buyer what long-term costs they will face when buying or leasing an EV,’ Labbé added.
Petrol market continues decline
Registrations of petrol-powered cars slumped 26.4% in April, with 66,814 units. This was the worst year-on-year performance of any powertrain last month. It also continues a streak of declines over 20%, which began at the start of 2025. Removing petrol from the overall market results in an improvement of 15.4%.
The fuel type accounted for 27.5% of the market, a drop of 9.8% compared to 12 months ago. Petrol’s share has fallen consecutively month on month since August 2024. Last month’s performance also marked the powertrain’s lowest share since August 2023.
From January to April, petrol-powered cars suffered a 26.6% drop in registration, with 256,497 deliveries. This equated to a loss of 92,815 units. It represented 28.3% of the new-car market in this period, down from 37.2% in April 2024.
Diesel’s drop
Diesel-powered cars also struggled in April, falling 18.7% year on year with 37,649 registrations. This marks five consecutive double-digit declines for the fuel type. It captured 15.5% of total volumes, a drop of 3.6pp compared to April 2024.
In the year to date, the powertrain endured a 20.9% slump in deliveries, with 140,611 units. Diesel-powered cars took a 15.5% market share from January to April, down from 19%.
Adding together petrol and diesel figures, the internal combustion engine (ICE) market fell 23.8% in April with 104,463 registrations. This was the powertrain grouping’s fifth consecutive month of double-digit declines. The most recent four came in at over 20%. ICE models made up 43% of new-car deliveries, down 13.4pp year on year.
Across the first four months of 2024, ICE-powered car registrations dropped by 24.7%, with 397,108 deliveries. This was a loss of 129,975 units compared to the same period last year. Removing the powertrain grouping from overall volumes would have seen the market improve by 24.25. ICE models took a 43.8% share in the year to date, down from 56.2%.
Hybrid market improves
The hybrid market enjoyed a 12.2% increase in April, recording 67,379 registrations. The result marked eight consecutive months of growth.
The technology captured 27.8% of total deliveries last month, an improvement of 3.1pp year on year. However, this was the lowest hybrid share since July 2024. The powertrain was just 0.3pp ahead of petrol’s share last month, compared to its 1.7pp lead in March.
From January to April, the technology saw volumes rise by 11%, reaching 259,644 deliveries. This gave it a 28.6% market share, up from 24.9% 12 months prior. The hybrid share also sat just 0.3pp ahead of petrol in the year to date.
Swapping positions
Combining the EV total with hybrid figures, the electrified market grew by 30.9% last month with 137,231 registrations. The powertrain grouping accounted for 56.5% of overall deliveries, up 13.4pp compared to 12 months ago.
Electrified models have effectively swapped positions with ICE. The fossil-fuel’s share is now 0.1pp lower than the electrified market’s share from one year ago.
In the first four months of the year, registrations of electrified models improved by 25%, with 506,263 registrations. The strong improvement was driven largely by EVs, gaining 75,494 units in the year to date, compared to hybrid’s 25,670-unit increase. This gave the powertrain grouping a 55.8% share, up from 43.2%.
More electrified options
‘The continued growth of electric and hybrid models shows that there is demand for electrified cars even without purchase incentives. One of the reasons is that the EVs are now offered in every segment. The wide selection of BEVs within a single brand is appealing to more and more customers,’ stated Madas.
‘Furthermore, many EVs have now reached a price range that is close to the level of conventional ICE powertrains. Discounts for both purchasing and leasing are also creating further momentum in the showrooms,’ he noted.
‘Five years after the initial boom due to the significantly increased environmental bonus, many leased vehicles are returning to dealerships and most customers are leasing new EVs again, as numerous dealers report,’ Peckruhn highlighted.
The ‘others’ category, including hydrogen fuel-cell electric vehicles, natural gas and liquified petroleum gas vehicles, E85/ethanol and other fuels, fell by 16.3% in April. The grouping’s total of 1,010 units gave the category a 0.4% market share, a drop of 0.1pp from one year ago.
From January to April, the powertrain grouping recorded 3,897 deliveries, a decline of 31.7% year on year. The category captured 0.4% of overall volumes, down 0.2pp.
