The German automobile market contracted in June, but electric cars are still making progress, except for Elon Musk’s Tesla brand whose sales continue to falter.
A total of 256,193 passenger cars were registered in Germany in June, 13.8% less than a year earlier, the Federal Automobile Agency (KBA) said on Wednesday.
Main cause of this drop: a one-off effect linked to a peak in new registrations in June of the previous year,” commented the consulting firm EY. In June 2025, the market was held back by sales of traditional gasoline (-34%) and diesel (-32%) cars.
On the other hand, the electric segment, up for the sixth month in a row, continues to regain color after a year of free fall, due to the end of government subsidies for electric vehicles in December 2023.
100% electric registrations increased by 8.6% in June, regaining a share of 18.4% of total cars sold, at the same level as the 2023 average, the peak for the segment, compared to only 13.5% for the whole of 2024.
The Tesla exception
But in this table, Tesla is an exception: registrations of the American brand fell by 58% in the first half.
The decline is confirmed month after month, despite the departure of Elon Musk from Donald Trump’s presidential council at the end of May, a decision which was not enough to restore the image of the manufacturer, boycotted in several countries.
The Californian manufacturer also announced on Wednesday a drop in its global deliveries in the second quarter, particularly in China, its second largest market after the United States.
However, the group was ahead in this segment compared to German manufacturers. The latter have been in crisis since last year, forced to take cost-saving measures and accelerate cheap electrification to offer more affordable models. All in an environment marked by falling global demand, American customs duties, persistent inflation and the rise of Chinese manufacturers.
Chinese number 1 BYD sold 6,323 vehicles in Germany during the first six months of the year, a spectacular increase of 426% year-on-year.
Among the new entrants to the European market, the Chinese XPeng has also sold 1,065 cars in Germany over the last six months (+3,336% over one year).
