The passenger car and SUV market in Germany reached 207,640 registered units in January this year, representing a 2.8% decline compared to the same month in 2024, according to data published on Wednesday by the German Federal Motor Transport Authority (KBA).
In January, 34,498 battery electric vehicles (BEVs) were registered, marking a 53.5% increase compared to the same month last year, with a market share of 16.6%.
At the same time, hybrid vehicle sales grew 15.7% year-on-year, reaching 76,964 units. Among these, 17,712 were plug-in hybrids (+23.1%), achieving a market share of 8.5%.
Additionally, 62,358 petrol-powered passenger cars were registered in January, representing a 23.7% decline compared to the same month last year, with a market share of 30%.
Meanwhile, 32,956 diesel vehicles were registered, a 19.5% drop, reaching a 15.9% market share.
Furthermore, 859 liquefied gas-powered passenger cars were sold last month, a 54.8% decrease, with a market share of 0.4%. No natural gas or hydrogen-powered vehicles were registered.
Volkswagen Starts 2025 as the Number One Brand, While Tesla Plummets
By brand, Volkswagen began the year as the best-selling brand in the German market, with 46,381 units registered, marking an 11.6% year-on-year increase.
It was followed by Mercedes, with 19,727 vehicles sold (-7.5%), and BMW, with 16,228 units (+0.9%).
Despite the German EV market growing by more than 53% in January, Tesla’s sales dropped by 59.5% year-on-year, registering only 1,277 units.
In contrast, the other major plug-in vehicle manufacturer, BYD, increased its sales by 69.1% year-on-year, achieving a total of 235 units sold in January 2025.
EVs Recover Amid Stricter Regulations
The German automotive market is witnessing a recovery in the EV segment after a year of declines following the withdrawal of purchase incentives for this type of vehicle at the end of 2023.
Moreover, the sector is seeing growth in response to the European Union’s tightening CO₂ emission regulations for car manufacturers.
The CAFE regulation (Corporate Average Fuel Emissions) establishes that carbon dioxide emissions must be reduced to 93.6 grams per kilometre for cars sold across the 27 EU member states.
Any manufacturer failing to comply could face fines of up to 95 euros per excess gram, opening the door to multi-million euro penalties for carmakers that fail to meet zero-emission vehicle sales targets outlined in EU regulations.
At the same time, Volkswagen, the largest car manufacturer in Germany and Europe, managed to maintain its market leadership last month in its home country after months of turbulent negotiations and amid the threat of closing three of its plants in Germany.
Volkswagen Workers Meet Amid Cost-Cutting Plans
On Wednesday, Volkswagen employees gathered at the company’s headquarters in Wolfsburg to evaluate a cost-cutting plan that was negotiated in December between Volkswagen’s management and trade union leaders.
This was the first general meeting of Volkswagen workers since the agreement was reached after months of intense negotiations and repeated short strikes at Volkswagen’s German plants.
According to the agreement, the automaker plans to reduce its German workforce by 35,000 jobs by 2030. However, the company committed not to impose layoffs or close plants, which were ‘red lines’ set by the IG Metall union during negotiations.
Read more: Top companies gather at the “Storage, Renewable and Electric Vehicles Integration Forum”
