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Germany’s 2025 Auto Market Tilts to EVs as VW Leads, Tesla Slides, BYD Takes Global Crown

Industry sentiment brightens with talk of new purchase incentives in 2026.

Overview

  • Official KBA data show 2.86 million new cars in Germany in 2025 (+1.4%), with 545,142 battery-electrics up 43.2% to a 19.1% share as petrol and diesel registrations fell sharply.
  • Volkswagen Group, BMW and Mercedes took the top six spots for pure‑EV registrations, and VW’s ID.7 was the year’s best‑selling electric model; SUVs led all segments with a 33.3% share.
  • Tesla’s German registrations dropped 48.4% to 19,390, pushing the brand to ninth place for EVs as former chart‑topper Model Y fell well down the model rankings.
  • Globally, BYD overtook Tesla in 2025 with about 2.26 million EVs delivered versus roughly 1.64 million for Tesla, reflecting the Chinese maker’s rapid expansion.
  • Germany’s auto outlook has inched up according to the ifo institute, and industry groups say BEVs could reach about 25% of 2026 new‑car sales if the proposed purchase bonus is enacted, even as GM records a $6 billion EV‑related charge in the U.S.