German Auto Market in 2025 continues to fall. YTD sales up to July fell 2,6% with Seat reporting the sharpest losses, down 25%. EV sales stayed on track, with Cupra securing a spot as top contender.
Economic Environment
In 2025, Germany’s economy is expected to grow by 0.7% after contracting by 0.1% in 2024, as domestic demand strengthens. Inflation is set to decline further to 2.1% in 2025 from 2.4% in 2024, driven by falling energy prices and moderating service costs. The labour market, which weakened in 2024 with rising unemployment and falling job vacancies, is projected to stabilise as economic activity recovers. Private consumption, which was dampened by high uncertainty and a rising saving rate in 2024, is expected to rebound as real household income improves.
Investment, constrained last year by weak foreign demand and high financing costs, is forecast to pick up in 2025, particularly in construction and equipment, supported by lower interest rates and tax incentives. Energy-intensive industries, which struggled with high costs in 2024, will continue to face competitiveness challenges, keeping net exports a weak growth contributor. The fiscal deficit, which declined to 2.2% of GDP in 2024 with the phase-out of energy subsidies, is projected to shrink further to 2.0% in 2025 as revenues rise. Government debt, which stabilised at around 63% of GDP in 2024 despite weak growth, is expected to remain at similar levels over the forecast horizon.
Automotive Industry Trend and Outlook
Germany’s car market continues to report negative YTD figures in 2025. Cumulative sales up to July fell by 2.6% to 1,66 million units.
Brand-wise, Volkswagen was still the leader (+2.2%), followed by Mercedes (+1.2%), BMW (+5.7%) and Skoda (+7.5%).
Audi ranked 5th (-7%), followed by Opel (-15.2%), Ford -up 1 spot- in 7th (+7.6%) and Hyundai -up 1 spot- in 8th (-5.1%)
Seat -down 2 spots- ranked 9th (-25%), followed by Toyota, which closed the top 10 (-10.6%).
Looking at specific models, for which there is a specific article dedicated, the Volkswagen Golf was still the best seller despite losing 22.9% in year-on-year sales, followed by the Volkswagen T-Roc, down 0.8%.
EV Market Trend and Outlook
EVs stayed on track up to July 2025, reaching a 13% share of the total market. However, this was largely attributed to a weak 2024 impacted by inconsistent environmental subsidies. Still, shifting consumer attitudes and the arrival of more affordable EVs could accelerate adoption this year.
Volkswagen led with a 92.8% growth. Skoda followed in 2nd, climbing 2 spots and reporting the strongest performance (+138.5%). Cupra (+136.3%) -up 4 spots- ranked 3rd.
Medium-Term Market Trend
Germany’s car market, the largest in Europe, has experienced significant fluctuations over the past decade. Between 2014 and 2019, it saw steady growth of 18.71%, reaching a peak of 3.6 million sales in 2019 for the first time in the decade.
However, the arrival of the COVID-19 pandemic in 2020 severely impacted the market, causing a sharp 19.18% decline and pushing sales back below the 3 million mark. The downturn continued post-pandemic, with a further 10% drop in 2021, followed by stagnation in 2022. Factory shutdowns, supply chain disruptions, job cuts, and weakened consumer demand deepened the recession, further straining the industry.
Government stimulus packages provided temporary relief, leading to a 7.48% market rebound in 2023. However, structural challenges such as rising input costs and increasing competition hindered recovery, resulting in a slight 0.8% decline in 2024.
The EV market benefited significantly from supportive policies, with major automakers like Volkswagen and BMW accelerating their electrification strategies. Despite steady growth over the previous five years, the sector took a hit in 2024, plummeting 15.9% after subsidy cuts, highlighting its continued dependence on government incentives.
Tables with sales figures
In the tables below we report sales for all Brands, top 10 Manufacturers Group and top 10 Models.
