German Electric Vehicle Manufacturing Reaches New Heights Amid Strong Industry Momentum
International NewsNews
6 February 2026

German Electric Vehicle Manufacturing Reaches New Heights Amid Strong Industry Momentum

Germany hit a record 1.67 million EVs produced, staying second globally behind China as output rises and new buyer subsidies are announced.

Germany has achieved a new milestone in electric vehicle (EV) manufacturing, posting its highest annual output to date and firmly retaining its status as the world’s second-largest EV production centre after China.

Fresh figures from the automotive association VDA show that German factories increased their production of battery-electric cars by 15%, delivering around 1.22 million units last year. Output of plug-in hybrid models expanded even more dramatically, rising by 54% to approximately 450,000 vehicles. Altogether, 1.67 million electric passenger cars rolled off German assembly lines—representing a robust 23% year-on-year rise.

The new totals keep Germany ahead of the United States (US), which recorded 1.04 million electric vehicles produced over the same period. China, meanwhile, continued to dominate the global market with 16.1 million units manufactured.

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VDA President Hildegard Müller credited the strong performance to the sector’s determination to advance electric mobility and climate-friendly transport solutions. The association forecasts a further 10% growth in battery-electric vehicle production by 2026.

To encourage more domestic buyers to switch to electric cars, the federal government announced in January that families with low and middle incomes will be eligible for subsidies of up to $7,000 when purchasing a new EV.

Müller emphasised, however, that the long-term success of Germany’s electric transition will depend on strengthening the broader ecosystem. She called on policymakers to speed up improvements to the national charging network, reinforce the electricity grid, and address high power prices to ensure that incentive schemes remain meaningful and effective.

S

Staff Writer

Reporting from the front lines of the automotive industry, delivering expert analysis and the technical updates that drive the South African motor sector forward.