Global electric vehicle adoption significantly surged over the past three years, according to KfW study findings.
In the heart of Europe, Germany is leading the charge in electric vehicle (EV) adoption. The country's robust EV market is showing no signs of slowing down, with strong production, export, and registration numbers.
According to a study conducted by KfW Research, an average of 82,000 electric vehicles worth 3.4 billion euros were exported per month from Germany in the first quarter of 2025. This figure represents a significant increase since the beginning of 2024, with Germany's share of pure electric vehicles in car exports from the Federal Republic rising to 27 percent.
Domestically, the EV market is thriving. New battery electric vehicle (BEV) registrations increased by 35.1% year-over-year in the first half of 2025, with a 17.7% market share. Plug-in hybrid (PHEV) registrations surged 83.6% in July 2025 alone, holding over 10% market share. As a result, every fifth new car is now an electric vehicle.
Volkswagen Group commands nearly half (49%) of Germany’s EV market share, with substantial growth. Tesla's sales, on the other hand, declined significantly by 60.4% in 2025.
Household attitudes reflect a structural shift away from internal combustion engine (ICE) vehicles toward EVs. Concerns about range have decreased from 54% to 44% in the past five years, while concerns about charging infrastructure have decreased from 72% five years ago to 51%. Doubt about environmental compatibility as a reason for not buying an electric vehicle has also decreased significantly, from almost every second household in 2020 to 34% in 2025.
The phase-out of direct subsidies caused a minor dip in EV market share in 2024, but indirect incentives and environmental policy commitments have sustained momentum. The ICE vehicle segment is shrinking due to fuel cost rises, regulatory pressures, and consumer preferences shifting to EVs.
Germany produced a record 864,000 electric cars in the first half of 2025, including both BEVs and PHEVs. Meanwhile, traditional ICE vehicle sales continue to decline sharply.
KfW economist Rode recommends supporting the market ramp-up of electric vehicles in Germany by reducing information deficits about the safety of electric vehicles, creating incentives for time-optimized charging, and simplifying charging options in multi-family houses. Concerns about electric vehicles purchase price remain the most common reason at 59%.
It's worth noting that more than a third (36%) of charging power comes from self-generated green electricity, a record value. The value of electric vehicle exports from Germany exceeds the value of imports by five times.
Germany's EV adoption contributes notably to EU market trends where battery-electric vehicles reached 15.6% market share overall in H1 2025. PHEV growth in Germany (+55.1%) is a key driver within the EU.
In summary, Germany’s EV market is resilient and expanding, driven by strong industrial capacity, leading brands like Volkswagen, evolving government policies favoring electrification, and shifting household demand away from petrol or diesel cars. The future outlook remains positive, with increasing production, registrations, and market share expected over the coming years as electrification goals intensify and ICE vehicles become less attractive.
- Amidst the growth in electric vehicle (EV) adoption, Germans are increasingly integrating gadgets such as smartphone apps and in-car technology to optimize charging and enhance their lifestyle.
- With the rise of electric-vehicles, Germany's car market has undergone a considerable revolution, as consumers show a preference for the eco-friendly tech of EVs over traditional gadgets like luxury sports cars.
- The phase-out of subsidies for internal combustion engine (ICE) vehicles and the shifting household demand towards electric-vehicles have led to a decline in sales of conventional gadgets like gasoline-powered and diesel cars in Germany.
