The German new car market saw a surge in battery-electric vehicle (BEV) registrations at the beginning of 2025. However, the question arises – is this growth a reason for celebration, or were there external factors at play influencing the figures? In a review of the results, Autovista24 journalist Tom Hooker delves into the details.
In January, a total of 207,640 new cars hit the roads in Germany, marking a 2.8% decline compared to the previous year. This decrease translated to 5,913 fewer units compared to the same period in 2024, making it the lowest delivery total since August 2024.
The market performance in January continued a trend of decline that had been observed towards the end of the previous year. In fact, the market had only recorded growth in one month since July 2024.
According to the KBA, 63.9% of registrations in January were commercial, representing a 6.8 percentage point decline compared to the previous year. Private deliveries, on the other hand, grew by 9.7%, with consumers accounting for 33% of the total volume, up from 29.2%.
BEVs emerged as the top-performing powertrain in January, with registrations showing a significant jump of 53.5% to reach 34,498 units. This growth represented an increase of 12,024 deliveries compared to the same period last year, making it the technology’s first double-digit improvement since January 2024.
However, this seemingly positive outcome for BEVs was influenced by two major factors. Firstly, the abrupt withdrawal of incentives for electric vehicles in Germany in December 2023 led to a drop in deliveries in January 2024, making it the lowest volume month for the technology in the previous year.
The second reason for the strong growth in BEVs in January was the tightening of EU CO2 fleet limits for 2025. Car manufacturers faced fines if these targets were not met, leading them to possibly withhold BEV deliveries towards the end of 2024 to count towards this year’s target.
Industry experts have cautioned against viewing the surge in BEV registrations as a cause for celebration, citing potential regulatory influences on the figures. They call for a review of CO2 fines and more support for the sector to ensure a successful transformation of the automotive industry.
The future of the automotive industry hinges on a supportive framework, regular review of targets, and strengthening consumer confidence through initiatives like charging infrastructure expansion. The call for more openness surrounding the EU’s ban on internal combustion engine sales from 2035 and recognition of the importance of renewable fuels is also emphasized.
In conclusion, while the growth in BEV registrations in Germany in January may seem promising, a closer look reveals underlying factors that need to be addressed for sustainable development in the automotive sector. The industry must navigate regulatory challenges and ensure a smooth transition towards a more sustainable future.
