According to the German Association of the Automotive Industry (VDA), Germany was the worldʼs second-largest production hub for electric vehicles (EV) in 2025. VDA president Hildegard Müller claims around 1.67 million electric vehicles were produced – an increase of 23 percent year-on-year. China remains in first place, while the United States follows in third.
Domestic battery production remains critical
Battery-electric vehicles account for the largest share, with 1.22 million units produced – a 15-percent increase. Plug-in hybrids recorded even stronger growth, rising by 54 percent to approximately 450,000 units. This growth reflects not only rising vehicle output, but a rapidly increasing demand for high-performance battery systems. However, Europe remains structurally dependent when it comes to battery cells. Despite ongoing gigafactory projects, such as Salzgiga by PowerCo, scaling domestic cell production is still a critical factor for cost competitiveness, resilience, and long-term industrial sovereignty.
Further growth expected
New government purchase incentives, including subsidies for lower-income private EV buyers, are intended to further stimulate demand. Against this backdrop, the VDA expects additional production growth for 2026. The key question, however, will be whether battery value creation, energy prices, and charging infrastructure can keep pace with this momentum.
Source:
Reuters
