BEVs lead soaring sales of new cars in Germany

08 April 2026

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Battery-electric vehicles (BEVs) recorded surging sales in Germany’s new-car market during March. Yet it was not the only powertrain to enjoy positive results, as overall registrations achieved double-digit growth. Autovista24 journalist Tom Hooker reviews the figures.

After a sluggish start to 2026, the German new-car market bounced back in March. Registrations increased by 16% year on year to 294,161 units, according to the KBA. This marked the biggest delivery growth since April 2024 and the highest volume total since June 2024.

Last month’s increase was powered by soaring BEV sales, while lower-than-usual internal-combustion engine (ICE) declines also influenced overall results. Across the first quarter, registrations improved by 5.2% to 699,404 units. This can be seen as a positive performance, following a decline in January and a marginal increase in February.

‘March 2026 demonstrated notable growth within Germany’s new-car market. Private registrations increased by 22.2% in March. Meanwhile, commercial registrations, which maintained a dominant market share of 65%, saw growth of 13%,’ commented Ina Gronemeyer, cluster head of valuations for Germany, Austria and Switzerland.

‘The SUV segment remains the leading category, recording a 29% increase and capturing a 37.1% market share,’ she added.

Volkswagen’s contrasting fortunes in Germany

Germany’s best-selling new-car brands saw varying results across the first quarter. Some inter-group battles remained, while Chinese brands continued to take a foothold in the market.

Volkswagen (VW) suffered a 5.3% drop in registrations between January and March. Yet, it continued as Germany’s most popular new-car brand, with a 18.7% share. In contrast, Skoda, a VW Group brand, enjoyed a 24.6% year on year increase in the first quarter. It placed second in the best-sellers table, with an 8.9% share of overall deliveries.

There were differing performances for other domestic carmakers. Mercedes-Benz endured a 2.4% delivery decline in third place, just 548 units ahead of BMW, which recorded an 8.1% improvement.

Audi saw an uptick of 7.1% in fifth. This contrasted with fellow VW Group brand SEAT, which saw a 14.6% drop in sixth.

Positive first quarter for Stellantis

Stellantis brands Opel and Fiat had a positive first quarter. The former posted a registrations increase of 38.9% in seventh, as Fiat deliveries soared by 65.6% in 10th. In between the two marques came Ford and Hyundai. The US carmaker suffered a 7.4% decline in eighth, while Hyundai achieved a 16.5% improvement in ninth.

Elsewhere, BYD continued its upward trajectory. It saw a 644.5% surge in registrations year on year, giving it a 1.3% market share. Leapmotor and Xpeng also saw deliveries soar by 370.7% and 179.4%, respectively. Although both recorded market shares of less than 1%.

Tesla posted a higher share of 1.8% while achieving a triple-digit improvement of 160% year on year. Overall, non-domestic brands performed strongly across the first quarter, according to the VDIK.

‘Non-domestic manufacturers have once again significantly increased their market share compared to the previous year. This shows that the vehicles coming from these brands are technically innovative, attractive and meet the wishes of the customers,’ explained Imelda Labbé, VDIK president.

‘In the case of BEVs, non-domestic carmakers were also able to make noticeable gains,’ she noted.

Soaring BEV market in Germany

BEV registrations saw significant year-on-year growth in March. Volumes surged by 66.2% to 70,663 units, translating to a 24% market share. This was up 7.2 percentage points (pp) from March 2025.

This was the biggest monthly increase and largest share since August 2023. However, that period saw a pull-forward effect, before subsidies for commercial BEV buyers ended in September 2023.

From January to March, all-electric deliveries improved by 41.3% year on year. The technology accounted for 22.8% of overall new-car volumes, up 5.8pp from 12 months prior.

The technology also ended the first quarter 0.1pp ahead of petrol in terms of market share. This meant BEVs were the second most popular powertrain in Germany’s new-car market during the first quarter of 2026.

Smaller PHEV improvement

Meanwhile, plug-in hybrid (PHEV) volumes recorded smaller improvements. Registrations rose by 13% in March to 29,996 units. After a strong 2025, this marked the powertrain’s lowest year-on-year increase since December 2024.

Yet due to even greater growth from BEVs and hybrids, its market share fell by 0.3pp to 10.2%. This was PHEV’s smallest slice of the market since June 2025.

PHEVs posted a 41.3% year on year improvement in the first quarter, with 76,114 registrations. The technology captured 10.9% of overall volumes, up from 9.6%.

Combining BEV and PHEV figures, electric vehicle (EVs) saw a 45.7% increase in deliveries during March. The powertrain group made up 34.2% of total registrations, up 7pp year on year. EV growth reached 33.4% in the first quarter, with its market share going from 26.6% to 33.7%.

Wait for EV incentives continues in Germany

Behind the successful start for EVs in 2026, multiple factors may have helped to boost demand, including purchase incentives. The new scheme was announced at the start of the year, with retroactive applications eligible back to 1 January.

Taxable household income and family size determine the amount of funding available for BEV, PHEV and extended-range electric vehicle purchases. Users will be able to apply for support online; however, the portal will not open until May.

‘The significant increase in private registrations may be attributed to the newly introduced EV incentives,’ Gronemeyer outlined.

‘However, it is premature to determine their long-term effectiveness, given the complexity and uncertainty surrounding application conditions. Challenging economic circumstances also make forecasting their effectiveness difficult,’ she projected.

While many buyers will be willing to buy before the portal is opened, some may hold off until May. The ZDK believes this delay will limit the potential of EV growth.

‘People need planning security, and not a funding policy on demand. As long as the promise of EV incentives is not implemented, customers will react with reluctance to buy,’ explained Thomas Peckruhn, ZDK president.

‘For many interested parties in the income class addressed by the incentives, it is a central component of financing, especially for the direct payment of special leasing instalments.’

‘Without clear guidelines, the desired impulse will fizzle out, and the hoped-for ramp-up of EVs will either not get going at all or will be significantly delayed,’ he commented.

Fuelling EV demand

Rising fuel prices may also be affecting EV demand, with the total cost of ownership (TCO) increasing for ICE models. According to the ZDK, the energy costs per 100 kilometres for BEVs are currently significantly lower than those for ICE vehicles.

‘The increased fuel prices play a role in the purchase of EVs, but it remains to be seen whether this will lead to more sales. Vehicle decisions are planned for the long-term, whereas short-term price signals at the petrol station only have a limited impact. So, clear funding rules and reliable framework conditions are crucial,’ outlined Peckruhn.

‘If energy prices remain at an elevated level and at the same time the eligibility criteria and the application procedure for EV incentives are defined clearly, transparently and reliably, then there is a good chance of a noticeable revival of private demand for EVs in the coming quarters,’ he forecasted.

Hybrid growth in Germany

Hybrids, including full and mild hybrids, achieved a 17.4% uptick in deliveries during March. This marked its strongest monthly growth since December 2024, with a total of 87,850 units. It also ensured a 0.3pp increase in share to 29.9%, making it the most popular powertrain in Germany’s new-car market.

Between January and March, hybrid volumes improved by 7.4%, with 206,566 units. This ensured a dominant 29.5% share, up 0.6pp year on year.

Adding hybrids to the EV total, electrified deliveries increased by 31% in March. This gave the powertrain group a controlling 64.1% market share. Electrified volumes improved by 19.9% in the first quarter, with a slightly lower share of 63.2% compared to March alone.

Can diesel recover?

While diesel deliveries continued to decline last month, its performance was surprisingly encouraging. It saw registrations drop by just 0.6%, the fuel type’s best year-on-year result since its 3.7% growth in October 2024. However, its 37,664-unit total was only enough for a 12.8% market share, down 2.1pp year on year.

Things looked slightly bleaker for diesel in the first quarter. Deliveries fell by 6.5% between January and March to 96,311 units, while its share went from 15.5% to 13.8%.

Petrol suffered steeper declines in both March and the first three months of 2026. The fuel type saw a 4.9% slump to 66,959 units, as its hold loosened by 5pp to 22.8%. However, this did mark its best performance since its 3.7% growth in October 2024.

In the first quarter, petrol volumes dropped by 16.1% to 159,058 units. It represented 22.7% of overall registrations, down from 28.5%.

Combining petrol and diesel figures, the ICE market endured a 3.4% drop in March, as its market share fell from 42.7% to 35.6%. First quarter deliveries were down by 12.7%, while the powertrain group’s hold slipped by 7.5pp to 36.5%.