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Germany Sets Record for 2025 EV Registrations as Government Plans 2026 Purchase Grants

Analysts warn the planned 2026 grants could largely benefit imports unless local‑content rules are applied.

Overview

  • Official KBA data show 545,142 new battery‑electric cars in 2025, up about 43% year on year, lifting BEVs to a 19.1% market share.
  • Total new‑car registrations rose roughly 1.4% to about 2.86–2.9 million, with plug‑in hybrids up 62.3% and average CO₂ emissions down nearly 12%.
  • Berlin has outlined a €3 billion subsidy from 2026 to 2029 with base grants around €3,000, rising to €4,000–€5,000 by income and children, pending EU state‑aid approval and final rules.
  • Deloitte estimates additional demand could exceed domestic supply and urges local‑content criteria to avoid subsidizing imported EVs, notably from China.
  • Market dynamics shifted as Tesla’s German registrations fell about 48% to ~19,000 and BYD gained share, while heavy discounts narrowed the EV–ICE price gap to roughly €1,340 and prompted fresh promotions such as Dacia’s cut‑price Spring.