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Germany 22 April 2026 8 min

Germany Car Market 2025: 2.78 Million Cars, VW Holds 19%, EV Share 18%

Germany sold 2.78M passenger cars in 2025, flat versus 2024. VW still leads, BEV share recovered to 18% after the 2024 incentive cut, diesel keeps shrinking.

Germany registered approximately 2.86 million passenger cars (Pkw Neuzulassungen) in 2025 according to KBA, broadly flat versus the 2.82M of 2024 and well below the pre-pandemic 3.6M peak of 2019. The market remains structurally smaller than a decade ago, with leasing and fleet renewal activity carrying most of the volume.

Volkswagen Still #1, Mercedes Strong #2

Volkswagen took roughly 19% market share with ~530,000 units sold across the Golf, T-Roc, Tiguan, Passat, and ID series. Mercedes-Benz held #2 at ~8.5% (~235k units), BMW #3 at 7.7% (~215k), Audi at 7.6% (~210k), and Skoda at 7.0% (~195k). The big-five German brands together account for almost half of the market.

BEV Share Recovers to 18%

After the German federal EV subsidy was abruptly ended in December 2023, BEV sales fell sharply in early 2024 (BEV share dropped to 12% mid-2024). By 2025, BEV share recovered to 19.1%, surpassing the pre-cut peak (KBA Jahresbilanz 2025). Tesla, VW ID series, BMW i-models, and Mercedes EQ models drove the recovery, helped by aggressive OEM-funded discounts.

Diesel Below 15%

Diesel new car sales fell to 13.8% in 2025, the first time below 15% in the modern era. As recently as 2015, diesel was 47.6% of German new car sales. Diesel-gate, urban diesel bans, and the punitive CO2-based Kfz-Steuer have all contributed to the long decline.

Hybrid: 24.7%

Hybrid (HEV) is now the largest single fuel category in Germany at ~24.7%, ahead of pure petrol (~33%) and BEV (~18%). The Toyota Yaris and CR-V Hybrid lead, but VW, Audi, BMW and Mercedes mild-hybrid offerings inflate the HEV count significantly.

Drill into the full KBA Bundesländer breakdown on the Germany dashboard.