EVs At 35.2% Share In Germany – Incentives Reboot?

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November saw plugin EVs at 35.2% share in Germany, up from 22.8% share year-on-year. BEV volume increased by 59% YoY, while PHEVs grew 57%. Overall auto volume was 250,671 units, up some 2.5% YoY. November’s best-selling BEV was the Volkswagen ID.7.

November’s auto sales saw combined EVs at 35.2% share in Germany, with full electrics (BEVs) at 22.2% share, and plugin hybrids (PHEVs) at 12.9%. These compare with YoY figures of 22.8% combined, 14.4% BEV, and 8.4% PHEV.

There is still ongoing discussion by the German government about the reintroduction of BEV incentives sometime in 2026 (start date is not yet decided). These will target lower income households and start from €3,000 per vehicle, and potentially up to €5,000 in certain conditions.

The previous discussion about imposing an eligibility cap or the vehicle price ceiling has now been shelved. No doubt this change was pushed by auto makers who want to make maximum profit from this new scheme, and making higher-priced models eligible gives them more profit.

In reality, any BEV priced above €45,000 should already be competitive with ICE peers, and does not need fiscal support. ICE vehicles in this price range could be subjected to higher initial taxes instead (as Norway does). But the design of such tax-payer funded government schemes is always in large part to line the pockets of capitalist elites (i.e. corruption) rather than being primarily designed to efficiently help common families to improve their life.

Combined combustion-only market share was down to 36.2% in November, almost a record low (only the anomalous December 2022 was lower, at 31.4%). We can expect this to potentially fall under 35% in December, but it will depend on what happens with the new BEV incentive scheme.

Once the scheme’s start date is confirmed, there will be a noticeable hold back of BEV sales ahead of that start date, and this will give temporary respite to combustion share.

Best-Selling BEV Models

Volkswagen dominated the model charts in November, with the ID.7 taking the lead, and the ID.3 coming second.

Last month’s leader, the Skoda Elroq, slipped to third in November.

There were two strong climbers in November. The new Mercedes CLA continued its ascent, reaching 5th place (and 1,985 units), from 9th the previous month. This is a great result for a premium sedan, but not unexpected, given the CLA’s impressive technical capabilities and real-world charms.

The other decent climber was the new MG S5 which delivered 884 units in November, reaching 19th spot, from 27th previously. The S5’s appeal is its practicality and value, and it is almost unmatched in this regard.

A few future BEV models registered a single unit for manufacturer testing, but we will look at these more closely when they deliver in customer volume in the coming months. A more imminent model is the Volvo ES90, which registered 16 units. These are just for showrooms for now as the Volvo website promises first deliveries only in early February.

Let’s check the 3-month ranking:

Volkswagen Group models took the top 5 slots, with the top 3 very close on volume – the ID.3, ID.7, and Skoda Elroq.

The Tesla Model Y is now way down in 13th place. This is a remarkable fall from grace for a model which was the annual best-seller for the past three straight years (including in 2024).

The Mercedes CLA is now up to 10th, with close to twice the volume of its ostensible rival, the Tesla Model 3.

Further back, outside the top 20, some newer models are gaining popularity and climbing steadily, including the Citroen e-C3 (now in 25th), the Ford Puma (27th), and the MG S5 (31st).

Let’s now check the manufacturing group rankings:

The top 3 ranks are unchanged, though with their weightings somewhat different from three months prior.

Volkswagen Group grew volume by 17% over the three months, outperforming the overall market’s 14% increase. As a result, its market share increased from 40.6% up to 41.8%.

Meanwhile BWM Group only increased volume by 2% over the prior period, and thus lost share, falling from 13.6% to 12.2%.

Stellantis increased volume by an impressive 32% and its share went from 9.5% up to 11%.

Further back there were a few adjustments in rank. Mercedes Group grew to overtake Hyundai Motor Group. Renault-Nissan dropped two spots to allow Ford and Tesla to step up.

Outlook

German auto sales so far in 2025 have only grown very marginally (less than 1%) YoY. Meanwhile YTD BEV sales have increased in volume by 41.3% YoY, a big improvement. But context is always key. Mostly this “big improvement”  is a baseline effect vs. the very weak 2024.  If we compare 2025 to 2023, the YTD BEV volume growth is a much more modest 4.4%. This weak reality is why the government (and automakers) are planning for the reintroduction of BEV incentives.

The German economy remains stagnant, with the first 3 quarters of 2025 officially each recording just 0.3% YoY GDP growth. To repeat again, the underlying reason for the stagnation is the extreme increase in energy prices across Europe, which especially impacts Germany with its significant heavy industrial sector. The energy prices in turn relate to the war in Ukraine, as well as the sabotage of the Nord Stream pipeline.

Inflation remained flat at 2.3% in November. ECB interest rates have remained flat at 2.15% since early June.  Manufacturing PMI dipped to 48.2 points in November, from 49.6 points in October.

What’s next for Germany’s EV transition? Do you have insight into when the new BEV incentives will come into effect? Please share your ideas and perspectives in the comments below.