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Germany: Electric car boom remains fragile

Automotive

The German market for electric cars is showing signs of life again. After the setback caused by the abrupt end of subsidies at the end of 2023, new registrations are now rising noticeably again. At first glance, this looks like the belated return of the upswing. At second glance, however, a much more complicated picture emerges: Government support is once again in the billions, the expansion of the charging infrastructure is progressing, tax advantages remain in place – and yet many buyers, especially in the private market, continue to react with remarkable caution.This is what makes the current figures so contradictory. Pure electric cars are on the rise again in terms of new registrations, but there is no sign of a broad wave of purchases. The market is growing, but not with the momentum that might be expected after years of political prioritisation, new purchase incentives and infrastructure programmes worth billions. This is precisely the core problem of German e-mobility: it is making progress, but it is not yet convincing across the board.It is true that significantly more battery electric vehicles have recently been registered. In 2025 as a whole, Germany once again proved to be an important growth driver within Europe. At the same time, the share of purely electric cars in all new registrations remains at a level that looks more like stabilisation than a breakthrough. It is also striking that the overall market is growing only moderately and that the commercial sector continues to dominate the new car business. Where company cars, fleet vehicles and tax-privileged company cars are strong, the figures often appear more dynamic than private demand actually is.This is precisely why industry observers are now looking less at the pure number of new registrations and more at the question of who is actually buying. And here, the situation is much more sobering. In the private sector, there is still a great deal of reluctance. Many households are postponing the switch, driving their combustion engines for longer or opting for petrol, diesel or a hybrid again when buying their next vehicle. This means that mass acceptance in the everyday market has not yet been achieved.