The German automotive market demonstrated a slight recovery in 2025, according to data released this week by the Kraftfahrt-Bundesamt (KBA). A total of 2.9 million new vehicles were registered, representing a 1.4% increase compared to the previous year. December saw a particularly strong performance with 246,439 new passenger cars registered – a 9.7% jump from December 2024.
The shift in vehicle registrations continues to reflect evolving consumer and business priorities. Commercial registrations accounted for 66.1% of new car sales (-0.6% year-on-year), while private registrations rose to 33.6% (+5.1%). Gray (32.4%), black (26.8%) and white (18.6%) remained the dominant color choices for new vehicles, underscoring consistent consumer preferences.
While the overall market saw growth, performance varied significantly among manufacturers. German brands largely benefited, with BMW leading the way with an impressive 8.9% increase and a market share of 8.9%. Close behind was Ford, with growth of 8.8% and a 3.8% share. Other German manufacturers experiencing gains included MAN, Mini, Volkswagen, Audi and Mercedes-Benz. However, notable declines were seen at Opel (-7.9%), Porsche (-17.7%) and Smart (-62.1%), signaling potential challenges for these brands. Volkswagen remains the dominant player within the German manufacturer landscape, holding a 19.6% market share.
Among imported brands, Skoda (+10.2%) and Seat (+6.7%) bucked the trend and posted significant gains. Skoda emerged as the leading imported brand with a 7.9% share. Emerging brands like BYD (+706.2%) and MG Roewe (+26.2%) demonstrated explosive growth, although their overall market share remains relatively small. Conversely, established brands like Tesla (-48.4%), Mitsubishi (-29.0%), Peugeot (-14.6%) and Toyota (-8.3%) experienced substantial declines, raising questions about their strategic positioning in the German market.
The SUV segment remains the undeniable leader, accounting for 33.3% of new vehicle registrations and experiencing an 11.9% increase. The premium upper-middle class saw the largest percentage increase, reflecting a shift towards more luxurious vehicles. The market is also witnessing accelerated adoption of alternative powertrains. Battery Electric Vehicles (BEVs) saw a significant 43.2% rise, now accounting for 19.1% of the market. Hybrid vehicles, including plug-in hybrids, also saw substantial growth, reflecting consumer willingness to explore transitional technologies. The decline in registrations of gasoline and diesel vehicles continues, signaling a broader shift away from internal combustion engines, with CO2 emissions per vehicle falling by 11.7% to an average of 105.8 g/km.
The commercial vehicle market proved more uneven, with only buses experiencing growth, while trucks and other commercial vehicles registered declines. The motorcycle market suffered a significant downturn of 35.5%.
Looking beyond new vehicles, the used car market showed a modest increase of 1%, with over 6.5 million passenger cars changing hands, demonstrating continued activity within the broader automotive sector. While the overall new vehicle registration numbers show a slight increase, the diverging performance of individual brands and the shifting powertrain landscape highlight the dynamic and competitive nature of the German automotive industry as it navigates a period of significant technological and regulatory transformation. The significant decline of traditional brands like Porsche and Tesla amidst the growth of imports suggests a realignment of market power is underway, potentially spurred by evolving consumer demand and government support for electric vehicles.