Germany’s Auto Market Slumps: Tesla Sales Continue to Crash

Sharp Drop in Vehicle Registrations

Germany’s car market continues to struggle. In June 2025, the number of newly registered vehicles dropped significantly, highlighting the deepening crisis in the industry. Only 256,000 new cars were registered during the month, representing a sharp 14% decline compared to the same period last year. The situation across the first half of 2025 paints a similarly grim picture, with 1.4 million fewer passenger cars registered than in the first six months of 2024 — a drop of 4.7%, according to the German Federal Motor Transport Authority (KBA).

The long-term perspective is even more troubling. Compared to the first half of 2019, car registrations have plunged by a staggering 24%, as reported by the German Association of the Automotive Industry (VDA), underscoring how much the sector has failed to recover from recent years of disruptions.

Electric Vehicles Show Modest Growth

While the broader market is struggling, electric vehicles (EVs) have seen a modest rebound. EV registrations rose by 8.6% in June, a slower growth rate compared to earlier months. Nonetheless, the overall performance in the first half of 2025 has been positive, with a 35% increase in new electric car registrations compared to the previous year.

Electric cars now represent a 17.7% share of the German auto market, surpassing diesel-only vehicles in sales. However, this growth hasn’t benefitted all EV manufacturers equally.

Tesla’s Collapse in Germany

Tesla, once the poster child of the electric vehicle revolution, is facing a serious decline in Germany. The U.S.-based automaker registered only 8,890 new cars between January and June 2025 — a staggering 58.2% drop compared to the same period last year. Tesla’s market share has dwindled to just 0.6%, putting it on par with niche brands like Jeep and Land Rover.

The steep decline shows that Tesla is struggling to maintain its foothold in one of Europe’s most important car markets, even as EV demand continues to grow.

Winners and Losers Among Brands

The overall picture for car manufacturers in Germany remains bleak, with only a handful of brands managing to buck the downward trend. French automaker Renault posted the strongest growth among brands with at least a 1% market share, increasing its registrations by 8.5% to 28,754 vehicles. The introduction of its new electric models, the R5 and R4, likely played a key role in this success.

Renault’s alliance partner Nissan also performed well, with a 4.6% increase in registrations, as did VW subsidiary Skoda. Among German brands, only BMW and Ford saw gains — both up by 3.8%. BMW registered 119,084 units, while Ford reached 53,159.

Mercedes-Benz held steady with 126,964 registrations, matching its performance from the same period last year. Volkswagen, the market leader, saw a slight decline of 1.1%, totaling 285,998 units.

Luxury brand Porsche experienced a severe downturn, registering just 16,513 cars — a 24.5% drop year-over-year. The Stellantis group also saw its major brands take a hit: Fiat sales fell by 21.1%, Citroën by 20.9%, and Opel by 20.4%.