Finance
Germany ranks second worldwide for EV production in 2025, VDA says
Published by Global Banking and Finance Review
Posted on February 4, 2026
2 min readLast updated: February 4, 2026
Quick Summary
Germany ranks second in global EV production, with a 23% increase in electric car manufacturing. Government incentives aim to boost EV purchases further.
Germany Maintains Second Place in Global EV Production for 2025
Germany's Position in Electric Vehicle Production
FRANKFURT, Feb 4 (Reuters) - Germany built a record number of electric vehicles last year, keeping its spot as the world's second-largest production hub after China, auto industry association VDA said on Wednesday.
Production of battery-electric vehicles rose by 15% to 1.22 million vehicles, while the number of plug-in hybrids jumped by 54% to around 450,000 vehicles, according to the data.
In total, 1.67 million electric passenger cars were manufactured domestically, a 23% increase.
Growth in Electric Vehicle Manufacturing
That made Germany again the second most important production location for electric cars worldwide, ahead of the U.S. with 1.04 million, VDA said, while China produced 16.1 million.
Government Incentives for EV Purchases
"The German automotive industry is resolutely pushing ahead with e-mobility and climate-neutral mobility," VDA President Hildegard Mueller said.
VDA expects a 10% increase in battery-electric vehicle production in 2026.
In January, Berlin said that the government will offer families with small and medium incomes subsidies of up to $7,000 to buy new electric cars.
Future Projections for EV Production
Mueller said policymakers must further improve the industry's overall conditions, including charging infrastructure, power grid expansion and electricity prices, so that measures like the new incentives are not short-lived.
(Reporting by Ilona Wissenbach, writing by Amir Orusov, editing by Thomas Seythal)
Key Takeaways
- •Germany remains second in global EV production after China.
- •1.67 million electric cars were built in Germany last year.
- •Government incentives boost EV purchases in Germany.
- •VDA forecasts a 10% rise in EV production by 2026.
- •Infrastructure improvements needed for sustained growth.
Frequently Asked Questions about Germany ranks second worldwide for EV production in 2025, VDA says
1What is an electric vehicle?
An electric vehicle (EV) is a type of vehicle that is powered by electricity instead of gasoline or diesel. EVs use electric motors and batteries to operate, resulting in lower emissions compared to traditional vehicles.
2What is battery-electric vehicle production?
Battery-electric vehicle production refers to the manufacturing of vehicles that are powered solely by electric batteries, without any internal combustion engine. This production has been increasing as demand for sustainable transportation grows.
