Germany’s EV Market Was In Freefall A Year Ago, Now EVs Are Outselling Gas Cars

It hasn’t taken long for the EV pendulum to swing back in Germany. Less than a year after Europe’s biggest car market pulled the plug on EV subsidies and watched demand stumble, fresh incentives have stepped in and buyers are piling back in like the discount aisle just reopened.

Despite economic jitters tied to trade tensions and the war in Iran, Germany’s car market picked up pace in March, with registrations rising 16 percent compared to the previous month. A total of 294,161 vehicles were registered, and a striking 24 percent of them were battery-electric. That translates to 70,663 EVs sold during the month.

Read: EV Buyers Just Got A Huge Break In Germany That Lasts Ten Years

This surge has pushed EVs ahead of both petrol and diesel models, which now account for 22.8 percent and 12.8 percent of the market, respectively.

This represents a significant 66.2 percent increase over the 42,521 sold in March of last year. Year-to-date, a total of 159,630 BEVs have been sold, up 41.3 percent from the 112,968 sold across the January-March period in 2025.

Hybrids Join The Party

It’s not just EVs that have surged in popularity this year. Sales of hybrid models, including plug-in hybrids, climbed 16.2 percent in March to 117,845 units. First-quarter figures are up as well, rising 10.4 percent to 282,600 units. Hybrids now account for 40.1 percent of all new car registrations in the country.

Several brands contributed to the surge in electrified vehicle sales. For example, BYD sold 3,438 vehicles in March, up 327.1 percent from the year prior. Sales from Leapmotor also rose 318.1 percent to 1,388, and Tesla sales climbed 315.1 percent to 9,252 units. This year, 12,829 new Tesla models have been sold in Germany, up 160 percent from the same period last year.

Among established brands, Opel (+43.0%), Audi (+25.0%), and BMW (+16.5%) posted strong gains in March, while Skoda reached an 8.4 percent market share, making it the top import brand.

As of January 1, new electric vehicles registered in Germany are exempt from motor vehicle tax until December 31, 2035. Additionally, EVs are eligible for a base subsidy of €3,000 ($3,500) and up to €6,000 ($7,000) for lower-income households. Similarities, plug-in hybrids, and extended-range EVs can receive subsidies of up to €4,500 ($5,200).

Overall registrations for the first quarter of the year rose by 5.2 percent compared to the same period last year.

Germany Car Sales March 2026