Germany Electric Vehicles and Charging Infrastructure
Overview & Background:
The automotive industry is Germany’s largest industry sector, accounting for almost a quarter of total industry revenues and supporting around 780,000 jobs. Germany is Europe’s leading market in terms of both automotive production and sales. In 2023, the German auto industry generated over USD 611 billion in total sales (+11% from 2022), which includes motor vehicles (USD 496.3 million), trailers (USD 15.7 million), as well as parts & accessories (USD 99.8 million).
Vehicle and engine manufacturers account for more than three quarters of the automotive industry’s total turnover. Automotive suppliers generated around 16.3 per cent of the sector’s turnover and manufacturers of bodies and trailers around 2.6 per cent. Around two thirds of the German automotive industry’s annual turnover is generated abroad, particularly in countries outside the European Union.
Electric Vehicles (EVs):
The German government has set forth an ambitious goal of 15 million electric vehicles (EVs) deployed on German roads by 2030. In 2023, there were 2.3 million EVs with charging capability on German roads – 1.4 million battery-electric vehicles (BEV); and 900,000 plug-in hybrids, (PHEV). Last year, 2.8 million vehicles were newly registered in Germany, of which 700,000 units were EVs (-16% from 2022) making up ca. 24,6% of all new vehicle registrations. Within the EV segment, BEVs in 2023 made up 524,219 units (+11%) and PHEVs 175,724 units (-51%). An additional 840,000 mild-hybrid electric vehicles (no plug-in/charging option) were registered in 2023.
In recent years, EV sales in Germany have experienced a significant growth, sparked in large part also by various incentive programs including direct subsidies (purchase premiums) and tax benefits for both private and commercial-use EVs and charging stations. From 2019 to 2022, EV registrations in Germany had increased tenfold, starting from a 3%-share of total passenger car registrations in 2019 to 31.4% in 2022.
However, the phase-out of several purchase subsidies for both PHEVs and BEVs notably slowed overall EV sales growth in Germany. Consequently, the sales share for EVs fell from 31.4% in 2022 to 25% in 2023. In comparison, in the rest of Europe EV sales and shares of new registrations mostly increased, e.g. in France and United Kingdom (25%), Netherlands (30%), Sweden (60%), as well as EU-wide EV champion Norway with a sales share (BEV+PHEV+HEV) of almost 95%.
While the EV market segment has seen significant growth in recent years, today only 2.9% of the German vehicle population (total: 49 million vehicles in 2024) are fully electric vehicles (BEV). Accordingly, based on current sales and associated growth rates, Germany may fall short of its ambitious targets and only reach between 11-13 million vehicles on German roads by 2030.
Used EV Market:
In 2023, the volume weighted average price of EVs in Germany was around 60,100 USD – on average a USD 16,500$ premium compared to new combustion engine vehicles in Germany. While growing, the market for used EVs is also still emerging: in 2023, around 97,400 transfers of BEV ownerships took place. While this constitutes a 40% increase from 2022, EVs still only make up 2% of passenger car ownership transfers in Germany.
EV Charging Infrastructure:
By 2030, the German government aims to have one million fully accessible and operational charging points for EVs installed nationwide. Several strategic initiatives and funding programs were initiated and directly supported by federal and state governments throughout the past decade. In 2023, around 116,000 (ca. 94,000 AC, 22,000 DC) public charging points with a total of 5.2 gigawatts (GW) of installed charging capacity were available in Germany, up 30% from the year before.
While both the total number of charging points as well as the density have increased across Germany, based on current deployment and growth rates Germany is likely to fall short of its 2030 target of one million charging points. According to the German Association of the Automotive Industry (VDA), the distribution of charging points in Germany is also not equitable as 48% of the country’s communities still do not have a single public charging station.
In 2021, Germany passed the Fast Charging Act (SchnellLG), a mandate to provide a comprehensive and need-based provision of fast charging infrastructure across Germany. Accordingly, the German government announced plans to invest up to USD 6.7 billion to further establish a comprehensive, needs-based and user-friendly fast-charging network, the so-called Deutschlandnetz. In 2023, Germany awarded tenders to install 8,000 fast-charging points including 1,100 High Power Charging (HPC) locations at 900 sites.
Market Access:
Germany is a highly sophisticated and competitive market with many German manufacturers and suppliers as world leaders in their respective sectors. New-to-market (NTM) must be prepared to face competition from locally established and globally operating companies with local presence and established market shares.
U.S. Exporters seeking to sell products in the EU and its member states must undergo a thorough assessment of, and ensure compliance with, existing European Commission Directives, i.e. regulatory requirements regarding technical specifications, product safety, as well as environmental impact and footprint. In addition to compliance with the legal requirements of an EU member state as well as relevant EC/UNECE directives and regulations, U.S. exporters are advised to assess and obtain evidence of compliance with relevant technical norms and standards via an accredited testing and technical consulting provider. Please contact the U.S. Commercial Service in Europe for further information and assistance on compliance with European Directives and industry standards at: https://www.trade.gov/export-solutions
Opportunities for U.S. Exporters:
Germany remains very open for technology innovation from the United States. Business opportunities exist for innovative suppliers of clean & sustainable transport solutions (vehicles, components, systems), charging and refueling technology (incl. services, infrastructure), new and lightweight materials, software, and data-driven solutions and services, cyber security solutions, as well as digital solutions for sales, marketing, and personal health (incl. in-vehicle user experience & monitoring). As a global leader in advanced manufacturing technology, opportunities also exist for suppliers of innovation in areas including automation, robotics, new manufacturing methods, and logistics.
Challenges: Industry Transformation:
Global mega trends including decarbonization and digitalization remain forceful drivers of an ongoing industrial and technological transformation bearing significant challenges to the traditional German automotive industry. As established supply and value chains are disrupted, many traditional automotive companies, especially small- to medium-sized suppliers, are under pressure to innovate and remain competitive. New players, including non-traditional automotive suppliers and big tech companies, are challenging established supply chains. Prime examples may constitute the growing share of critical components and systems such as battery systems and components (incl. raw materials), semiconductors, as well as software and digital services and solutions – many of which are also increasingly sourced from other regions, including Asia and North America.
Relevant Events:
IAA Mobility, September 9-14, 2025, Munich: https://www.iaa-mobility.com/en
The Battery Show Europe, June 3-5, 2025, Stuttgart: https://www.thebatteryshow.eu/en/home.html
Power2Drive, May 6-7, 2025, Munich: https://www.powertodrive.de/home
International Suppliers Fair (IZB) Wolfsburg, October 2026, Wolfsburg: https://www.izb-online.com/en/index.html
Your Local Contact
Mr. Felix Happe
Commercial Specialist
U.S. Commercial Service | U.S. Consulate General
Königinstraße 5 | 80539 München | Germany
T: +49-892888752 | Felix.Happe@trade.gov
https://www.trade.gov/germany
Disclaimer:
The information provided in this report is intended to be of assistance to U.S. exporters. While we make every effort to ensure its accuracy, neither the United States Government nor any of its employees make any representation as to the accuracy or completeness of information in this or any other United States government document. Readers are advised to independently verify any information prior to reliance thereon. The information provided in this report does not constitute legal advice. The Commercial Service reference to or inclusion of material by a non-U.S. Government entity in this document is for informational purposes only and does not constitute an endorsement by the Commercial Service of the entity, its materials, or its products or services. International copyright, U.S. Department of Commerce, 2024. All rights reserved outside of the United States.