The production of electric vehicles reached a record level in Germany in 2025 with 1.22 million battery-electric vehicles made, marking a year-on-year increase of 15%, according to new figures released by the German Automotive Association (VDA).
This means nearly one in three cars produced was fully electric. Together with a 54% increase in the production of plug-in hybrid electric vehicles, the total output of electrically powered vehicles reached 1.67 million units out of a total production of 4.1 million cars. This made Germany the second largest producer of electric vehicles behind China and ahead of the United States, VDA said.
“Domestic production of electric cars is at a record level, which clearly and impressively shows that the German automotive industry is resolutely moving forward with e-mobility and climate-neutral mobility,” said VDA president Hildegard Müller. She called for the continuation of EV subsidies from the German government, and highlighted the need for “more charging options for electric cars and commercial vehicles” along with “the consistent expansion of the electricity grid, cheaper charging power and improved access to raw materials that are critical for the transformation.”
The association expects EV production numbers to rise by a further 6% this year to 1.76 million units.
The figures come amid a bleaker overall picture for the German car industry, with all vehicle sales, including those with combustion engines, still 22% lower than their pre-pandemic peak in 2019. January 2026 saw a 9% decrease in the total number of cars manufactured compared with the year before, to 305,900 units. However, registrations of new battery-electric vehicles in Germany increased by 24% to 42,700 units in the same month compared with one year before, VDA added.
The German car industry has faced fierce competition from the Chinese electric car industry, which has thus far managed to undercut prices on electric vehicles, and has gained an “uncatchable lead” in terms of electric vehicle market share. A successful lobbying push from German car companies means the European Union’s 2035 ban on the sale of new combustion engine cars is likely to be watered down.
This post was originally published by Clean Energy Wire. Republished with permission.
![[Pixabay]](https://www.evshift.com/wp-content/uploads/2026/02/1770859355_news-p.v1.20260203.74fd8f802b444b15aaf20c114e818b43_P1-700x515.jpg "The conventional wisdom that “electric cars are expensive” no longer works in the used car market. T..")