Germany’s new-car market returned to growth in February, with registrations reaching 211,262 units, marking a 3.8% increase compared with the same month last year, according to data from the Federal Motor Transport Authority (KBA). The rebound followed a 6.6% decline recorded in January, although the market remains slightly down overall for the year.
In the first two months of the year, total registrations stood at 405,243 units, representing a 1.4% year-on-year decrease. Despite the slow start, the market has been supported by rising demand for electrified vehicles, particularly battery-electric vehicles (BEVs) and plug-in hybrids (PHEVs), while internal-combustion engine (ICE) vehicles continue to lose ground.
Electric vehicles drive market growth
Electrified vehicles recorded strong growth in February, with a combined total of 70,603 BEV and PHEV registrations. This represents a 27.3% increase compared with February last year. As a result, plug-in vehicles accounted for 33.4% of all new-car registrations in Germany, up 6.1 percentage points year on year.
Battery-electric vehicles led the surge both in terms of volume and growth. BEV registrations climbed 28.7% to 46,275 units, giving fully electric cars a 21.9% share of the market in February. This marks a 4.2 percentage point increase compared with the same month last year.
Plug-in hybrids also posted strong gains. Registrations rose 24.5% to 24,328 units, allowing PHEVs to capture 11.5% of the market, an increase of 1.9 percentage points.
Across the first two months of the year, electrified vehicles accounted for 33.3% of Germany’s new-car market. Total plug-in registrations reached 135,085 units, up 25.4% year on year, representing a significant 7.1 percentage point rise in market share.
New incentives may be influencing EV demand
The strong performance of electric vehicles comes as Germany introduces new purchase incentives for electrified cars. The program, launched at the beginning of the year, allows buyers to apply retroactively for vehicles purchased from 1 January. Financial support will depend on factors including household taxable income and family size.
Although applications will eventually be submitted through an online portal, the system will not open until May.
According to ZDK president Thomas Peckruhn, the February figures suggest growing interest in electric vehicles despite the uncertainty surrounding the new subsidy scheme.
“The February figures show that the passenger-car market is picking up again, and demand for BEVs is showing clear growth impulses, even though the subsidy has not yet taken effect,” Peckruhn said.
He noted, however, that many buyers still have unanswered questions regarding how the incentives will work in practice.
“Customers are still asking who will ultimately receive the premium, whether they will have to advance the money themselves, and what documentation is required. As long as these questions remain unanswered, the subsidy cannot unfold its signalling effect in the market,” he added.
Some consumers may already be purchasing electric vehicles with the intention of claiming the incentive later. Others, particularly those dependent on the subsidy to afford an EV, may delay their purchases until the application portal opens, meaning the full impact of the program may only become clear later in the year.
Hybrid growth remains limited
Hybrid vehicles also recorded growth in February, although the increase was far more modest. Registrations of full and mild hybrid models rose 4.1% year on year to 60,510 units.
Hybrids accounted for 28.6% of all new-car registrations during the month, making them the single most common powertrain category. However, their market share remained unchanged compared with February last year, highlighting the segment’s relatively stagnant growth.
In the year-to-date figures, hybrid registrations increased by just 1.1%, pushing their market share slightly higher from 28.6% to 29.3%.
When combined, electrified vehicles and hybrids delivered 131,113 units in February, a 15.4% increase year on year. Together they represented 62.1% of the German new-car market, up from 55.9% a year earlier.
For the first two months of the year, these powertrains captured 62.6% of the market, with registrations rising 12.8% to 253,801 units.
ICE vehicles continue to decline
While electrified vehicles expanded their presence, internal-combustion engine models continued to lose market share. Petrol and diesel cars recorded a combined 79,742 registrations in February, representing a 10.4% decline compared with the same month last year.
As a result, the market share of ICE vehicles fell by 6.1 percentage points to 37.7%.
Petrol-powered cars saw the sharpest drop. Registrations fell 14.9% to 48,404 units, giving the fuel type a market share of 22.9%, down 5.1 percentage points year on year.
Diesel models experienced a smaller decline, with registrations falling 2.4% to 31,338 units. Diesel captured 14.8% of the market, a drop of one percentage point compared with the previous year.
The downward trend becomes even more pronounced in the year-to-date figures. Diesel registrations declined 9.9% to 58,647 units, reducing its market share from 15.8% to 14.5%.
Petrol vehicles recorded an even steeper fall during the same period. Deliveries dropped 22.8% to 92,099 units, with market share shrinking from 29% to 22.7%.
Overall, petrol and diesel vehicles accounted for 37.2% of the German new-car market during the first two months of the year. Total ICE registrations reached 150,746 units, representing an 18.2% decline year on year, as electrified vehicles increasingly take their place.
Volkswagen retains market leadership
Volkswagen remained the dominant brand in Germany during February, registering 40,174 vehicles and capturing a 19% share of the market. Despite maintaining its leadership position, the brand’s deliveries slipped by 2.1% compared with February last year.
Within the Volkswagen Group, Audi and SEAT also experienced declines, with registrations falling 2.3% and 11.1% respectively. However, Skoda and Porsche posted strong growth, with registrations rising 26.5% and 10%.
BMW maintained steady performance, with registrations increasing slightly by 0.3%, allowing the brand to secure an 8.1% market share. Mercedes-Benz recorded a 9.9% drop in deliveries, leaving it just behind BMW.
Several other brands reported notable gains during the month. Fiat registrations surged by 113.2%, while Opel deliveries rose by 44.4%. Hyundai also saw solid growth with a 16.2% increase, whereas Ford registrations fell 19.4%.
Chinese automaker BYD continued its rapid expansion in Germany. Registrations soared by 1,550.3% year on year to 3,053 units, giving the brand a 1.4% market share, the same level as Mini. The BMW-owned marque also performed strongly, with deliveries increasing by 49.2%.
Another Chinese brand, Leapmotor, recorded particularly rapid growth as well. Its registrations climbed 486.6% to 1,091 units in February, highlighting the growing presence of new entrants in Germany’s evolving automotive market.
