Electric vehicle sales in Germany soared by 35% in the first half of 2025 despite the absence of government subsidies, with Volkswagen Group capturing nearly half of the market and pushing Europe’s EV expansion forward amid rising challenges in global operations.
Electric vehicle (EV) sales in Germany saw a pretty impressive jump—up about 35% in the first half of 2025—reaching nearly 249,155 units, even though there were no government subsidies involved. According to data from Dataforce, which Automotive News points out, Volkswagen Group continues to dominate the scene, with eight of the top ten best-selling EV models in Germany coming from them. The Volkswagen ID.7 topped the list with 18,017 registrations, closely matched by the ID.4 and ID.3 models. Only Tesla’s Model Y and BMW’s iX1 broke into that top group outside of Volkswagen’s lineup.
This strong growth really stands out when you compare it to the same period in 2024, which, by the way, saw EV sales drop by 16%. That decline was mainly thanks to Germany ending its EV incentives then. PHEVs (plug-in hybrid electric vehicles) also did quite well—sales soared 56% year-over-year, totaling about 138,633 units. Among those, the Volkswagen Tiguan was the most popular, followed closely by the Cupra Formentor and Volvo XC60. Even with these positive numbers for electric and plug-in hybrid vehicles, Germany’s overall passenger car market shrank a bit—down 5% to roughly 1.4 million cars during that same timeframe. Still, EVs and PHEVs continued picking up market share, especially with the promise of new government incentives later this year that could push demand even higher.
Volkswagen’s leading position in Germany’s EV space isn’t just a local thing—it fits into a bigger European trend too. In the first half of 2025, Volkswagen Group’s EV sales across Europe went over 135,000 registrations, beating out Tesla and BMW, who clocked in at about 109,262 and 94,658 respectively. Tesla’s Model Y kept its top spot as the most registered EV overall in Europe, but Volkswagen’s lineup—especially models like the ID.4, ID.3, and ID.7—grabbed substantial shares, showing how comprehensive their product range really is. Reports also mention that Volkswagen’s global battery electric vehicle (BEV) sales grew by 47% compared to last year, with Europe seeing nearly double the deliveries. U.S. sales increased by 24%, but that was offset somewhat by a 34% decline in China. As a result, Volkswagen’s worldwide market share in BEVs edged up from 7% to 11%, and total vehicle deliveries just nudged upward by about 1.3%, reaching 4.4 million units overall.
The gains in EVs owe a lot to Volkswagen’s smart product launches and the way they’re expanding their order books—they apparently grew by over 60% year-on-year. In Western Europe, around one in five vehicles they deliver is fully electric now, which is pretty remarkable and signals how deeply they’re penetrating the market. Their diverse EV lineup, featuring the ID.4/ID.5, ID.3, Audi Q4 e-tron, and the newer Macan, continues to dominate the best-seller charts. Overall, Volkswagen’s slice of the European BEV pie is estimated at around 28%, cementing their role as a key player in the segment.
But, interestingly enough, it’s not all smooth sailing abroad. For example, Volkswagen has said that tariffs introduced during the previous U.S. administration added about €1.3 billion (roughly $1.5 billion) to their costs in the first half of 2025. These higher tariffs, along with some restructuring expenses, hit their operating profit hard—down 33%, to €6.7 billion ($7.9 billion). It serves as a reminder that even with all their success, Volkswagen’s operating in a pretty complex environment, balancing aggressive electrification plans with geopolitical and economic challenges.
Meanwhile, back in Germany, Volkswagen’s dominance isn’t just reflected in the sales numbers but also in their growing market share. EVs made up around 27.3% of the passenger vehicle market by March 2025, and by April, that went up to 28.8%. During that period, models from Volkswagen alone accounted for nearly half—around 46-49.7%—of Germany’s BEV market, including models based on the Volkswagen Group's Modular Electric Drive (MEB) platform, like the Ford Explorer and Capri. This solid position is strengthened even further by new product launches and ongoing consumer preference for Volkswagen’s electrified offerings.
For everyone involved along the automotive supply chain—from the manufacturing plants, OEMs, logistics folks, distributors, workshop operators, to fleet managers—the data signals how crucial Volkswagen’s electrification push is in Germany and across Europe. The rapid expansion of EV and PHEV segments, combined with potential government incentives still on the horizon, is likely to shake up market dynamics further. That means plenty of opportunities—though, of course, challenges, too—for aftermarket services and supply chain partners trying to keep up.
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Source: Noah Wire Services
