When factoring in other electric drive types, such as plug-in hybrids, the industry must achieve a growth rate of around 53% year-over-year in electric vehicle sales.

Despite these optimistic projections, European data reveals a decline in the share of electric vehicles, dropping from 14.6% in 2023 to 13.6% in 2024, even as overall new vehicle registrations in the EU slightly increased.

This decline coincided with a 27% drop in the overall market for new vehicle sales in Germany in 2024, attributed to the cessation of government subsidies for electric vehicles.

Despite the push for electric vehicle growth, VDA President Hildegard Müller has raised concerns about the automotive industry's overall competitiveness, citing high energy costs, taxes, bureaucracy, and slow digitalization as significant challenges.

Currently, only 4 out of every 100 vehicles sold in Germany are electric, according to data from HUK Coburg at the end of 2024.

Reaching the German government's target of 15 million electric cars on the roads by 2030 seems increasingly unrealistic, as only 1.6 million fully electric vehicles were registered in 2024.

In 2025, the European market will see the introduction of seven new fully electric models priced under 25,000 euros, which may help stimulate sales.

To avoid penalties for failing to meet emissions targets, some manufacturers are resorting to price reductions or forming partnerships with electric vehicle producers to broaden their electric offerings.

To meet the European Union's CO2 limits for new car fleets, the automotive industry is gearing up for a substantial rise in electric vehicle sales in 2025.

The VDA also projects a 24% boost in domestic electric vehicle production, estimating that Germany will manufacture 1.7 million electric cars out of a total of 4.15 million vehicles by 2025.

Manuel Kallweit, chief economist of the German Automotive Industry Association (VDA), indicated that sales of pure battery electric vehicles must increase by approximately 75% from the previous year, translating to around 666,000 units.

The VDA anticipates that Germany will see approximately 2.8 million new car registrations in 2025, which is consistent with the previous year but still about 25% lower than the pre-crisis levels of 2019.