In January 2025, the German automotive market witnessed a significant shift towards electric vehicles (EVs), with new registrations of battery-electric cars reaching an impressive 34,498 units. This represents a substantial increase of 53.5% compared to the same month last year. The surge can be attributed more to the weak performance in January 2024 following a temporary discontinuation of environmental subsidies rather than exceptional sales this year. Since then, EV registrations have stabilized around 35,000 units monthly. In addition, plug-in hybrids saw an 8.5% market share, contributing to over a quarter of all new cars having electric capabilities. Meanwhile, combustion engine vehicles experienced declines, with petrol and diesel cars losing market share significantly.

January's Automotive Shift: Electric Vehicles Take Center Stage

In the heart of winter, Germany's car market underwent a notable transformation. The number of newly registered electric vehicles soared to 34,498 in January 2025, marking a remarkable 53.5% increase from the previous year. This growth was partly driven by the recovery from a low point in early 2024 when government subsidies for private buyers were briefly suspended. Since then, EV registrations have steadily climbed back to a consistent level of approximately 35,000 units per month. Moreover, plug-in hybrid vehicles also showed positive momentum, accounting for 8.5% of the market with a 23.1% rise compared to January 2024.

The overall automotive market, however, faced challenges, shrinking by 2.8% with a total of 207,640 new car registrations across all types. Despite this, the share of fully electric cars reached 16.6%, up from 13.5% in 2024. Combustion engines, particularly petrol and diesel models, saw significant drops in popularity, reflecting a broader trend toward greener alternatives. Petrol cars accounted for 30% of registrations, down 23.7% year-over-year, while diesel vehicles claimed just 15.9% of the market, lagging behind electric counterparts.

This shift is also evident in CO2 emissions, which fell by 9.5% compared to the previous year, although they remain above the EU target of 95 grams per kilometer. To meet emission reduction goals, further increases in electric vehicle adoption will be crucial throughout the year.

Among manufacturers, Tesla led the pack with 1,277 new electric registrations despite a 59.5% decline in January. MG Motor followed closely with 1,645 registrations, though it offers both electric and hybrid models. Polestar and BYD showed promising growth, with Polestar increasing by 113.6% and BYD by 69.1%. New entrants like Leapmotor also made their mark with 155 registrations, signaling the expanding presence of electric-only brands in the market.

From a reader's perspective, this data underscores the rapid evolution of the automotive industry towards sustainability. As governments and consumers increasingly prioritize environmental concerns, the future of transportation appears to be leaning heavily towards electric solutions. The continued support for EV incentives and infrastructure development will likely accelerate this transition, making cleaner vehicles not just a trend but a necessity.