Rapid growth in the electric car market: Increased demands leading to escalated discounts observed by Carwow
Electric Vehicle Demand in Germany on the Rise, Boosted by Government Incentives and Technological Advancements
The demand for electric vehicles (EVs) in Germany is on an upward trajectory, with record production, increasing market share, and technological advancements driving the growth. According to Carwok, a leading online platform for buying cars, this growth is influenced by various factors, including government subsidies, rising costs, and global competition.
In July 2025, German car manufacturers produced a record 635,000 battery-electric vehicles (BEVs), accounting for about 25% of Germany's total vehicle production, making Germany Europe's top EV production hub and the world's second-largest EV producer. The German EV market grew 35% year-on-year in the first half of 2025, with BEVs accounting for 18.4% and plug-in hybrids (PHEVs) for 8.4% of new car sales.
However, monthly new registrations are below previous records due to subsidy program interruptions. The abrupt cancellation of electric car subsidies in 2023 caused a sharp decline in EV sales, but the current government has pledged to reintroduce purchase incentives, which are expected to boost demand again.
In July 2025, 28.4 percent of all new car registrations were for hybrid models, excluding plug-in hybrids, and 18.4 percent were for BEVs. This represents a 5.5 percent increase in the share of BEVs compared to the previous year. Inquiries about BEVs on Carwow increased by 69 percent year-on-year in July 2025, and inquiries about hybrid vehicles increased by 56 percent compared to July 2024.
A further 10.3 percent of all new car registrations in Germany were for PHEVs in July 2025. Average discounts on electric vehicles were 9 percent higher than at the beginning of the year.
Carwok believes that direct support for private buyers is necessary to make the switch to e-mobility realistic for the wider population. They suggest moving away from multi-million euro fleet funding towards direct support for private buyers in Germany. Carwok is calling for direct support for private buyers, especially in the entry and mid-range segments, to help make EVs more affordable and accessible.
Carwok's preliminary data suggests a significant increase in BEV sales in August 2025. Sayler von Amende reports the increase in BEV sales according to Carwow's data. Carwok's call for action focuses on providing uncomplicated and targeted support for private buyers in Germany, citing recent developments in the UK as evidence of the effectiveness of direct purchase premiums.
Together, these trends and recommendations underscore that Germany's EV demand is poised for growth but requires stable and supportive policy frameworks to overcome cost pressures and global competition while leveraging technological advances and consumer incentives.
[1] Source: German Association of the Automotive Industry (VDA) [2] Source: Carwok [3] Source: German Federal Ministry for Economic Affairs and Climate Action [4] Source: German Federal Network Agency [5] Source: German Statistical Office (Destatis)
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