In March 2025, the German auto market displayed an intriguing dichotomy, with new car sales dipping 3.7% year-on-year to 253,500 units and first-quarter cumulative sales declining 4.3% to 664,600 units.

Amidst this market downturn, sales of pure electric vehicles (BEVs) surged 35.5% to 42,521 units, highlighting European automakers' relentless push towards electrification amidst EU carbon emission pressures.

Volkswagen retained its market leadership, Cupra emerged as a bright spot, while Tesla's sales plummeted. Chinese brands, though not yet mainstream, demonstrated significant potential in the electric vehicle segment.

Volkswagen models dominated the sales charts, with emerging offerings like the Cupra Formentor making a strong impression.

01

Germany March 2025 Sales Overview:
Powertrains, Brand Performance, and Potential of Chinese Brands

● In March 2025, German new car sales amounted to 253,497 units, a 3.7% year-on-year decrease, continuing a sluggish trend since the year's onset.

● First-quarter cumulative sales stood at 664,571 units, down 4.3% year-on-year, indicating growth pressures amid economic uncertainty and waning consumer confidence.

Pure electric vehicles (BEVs) shone this month, with sales hitting 42,521 units, a 35.5% year-on-year increase, accounting for 16.8% of the market share. First-quarter cumulative BEV sales reached 112,968 units, up 38.9% year-on-year.

● Brand Competition:

◎ Volkswagen led the pack with sales of 50,935 units, a 5.7% year-on-year increase, bolstering its market share to 20.1%, underscoring its robust local market dominance.

◎ Mercedes-Benz ranked second with 22,057 units, up 1.6% year-on-year, claiming an 8.7% market share.

◎ BMW followed in third place with 20,857 units, a 2.4% year-on-year decline, securing an 8.2% market share.

◎ Skoda and Audi ranked fourth and fifth, respectively, with 18,547 units (+13.6%) and 17,608 units (+2.4%), showcasing strong performances.

◎ Cupra skyrocketed to sixth place with sales of 9,617 units (+128.5%), capturing a 3.8% market share and setting a new historical high, emerging as the month's biggest dark horse.

◎ In contrast, Tesla sold only 2,229 units, down 42.5% year-on-year, with first-quarter cumulative sales falling by 62.2%, indicating a significant loss of competitiveness in the German market.

◎ Opel, Ford, and Hyundai experienced varying degrees of decline.

◎ Among Chinese brands, MG was the sole representative in this month's data, with sales of 2,100 units, up 34.7% year-on-year, accounting for a 0.8% market share and ranking 25th. First-quarter cumulative sales amounted to 5,498 units, up 23.8% year-on-year.

● Performance of Chinese Brands:

◎ In March 2025, MG sold 2,100 units, up 34.70% year-on-year; BYD sold 805 units, up 403.10%; Great Wall Motors sold 332 units; Xpeng sold 176 units; Li Auto sold 134 units, down 56.40%; NIO sold 21 units, down 56.30%; SAIC Maxus sold 13 units, up 333.30%; and Lynk & Co sold 3 units.

◎ As of March 2025, MG sold 5,498 units, up 23.80% year-on-year; BYD sold 1,225 units, up 211.70%; Great Wall Motors sold 673 units; Xpeng sold 432 units; Li Auto sold 574 units, up 2.00%; NIO sold 64 units, down 37.30%; SAIC Maxus sold 22 units, up 57.10%; and Lynk & Co sold 36 units, up 414.30%.

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Model Sales and Competitive Landscape Analysis

● Volkswagen models dominated the sales rankings, with the top four spots occupied by Volkswagen vehicles.

◎ The Golf narrowly retained its top spot (sales were only 9 units higher than the T-Roc) but fell 37% year-on-year, indicating waning market appeal.

◎ The T-Roc grew by 10.7% year-on-year, securing second place.

◎ The new-generation Tiguan increased by 22.8%, ranking third.

◎ The Passat maintained its fourth-place position with a slight decline of -0.1%.

◎ The Cupra Formentor surged to fifth place with a 48.9% increase, making an impressive debut and setting a new historical high.

◎ The BMW X1 increased by 45.1% year-on-year, ranking sixth, showcasing the appeal of luxury electric SUVs.

◎ The Volkswagen ID.7 ranked 13th with a staggering 1150% increase, marking Volkswagen's breakthrough in the electric vehicle sector.

◎ Additionally, the Cupra Terramar (28th) and Volkswagen Tayron (27th) entered the top rankings as promising new models.

● The competitive landscape of the German auto market is characterized by "Volkswagen's dominance, the rise of new forces, and the differentiation of luxury brands".

◎ Volkswagen firmly holds the core market position with its extensive product line and brand loyalty. The explosive growth of its electric vehicle model ID.7 further cements its leadership in the electrification transformation.

◎ As a sub-brand of the Volkswagen Group, Cupra quickly gained mainstream recognition with the success of models like the Formentor, exemplifying the appeal of its youthful and sporty branding.

◎ Tesla's sales decline reflects the challenges it faces in the German market, influenced by multiple factors.

◎ Among luxury brands, BMW maintains growth with electric SUVs like the X1, while brands like Porsche experience sales declines. Competition in the German market is shifting from traditional internal combustion engines to electric vehicles.

Summary

The German auto market in March 2025 revealed structural highlights amidst overall sluggishness: electric vehicle sales defied the trend, Volkswagen reinforced its dominant position, Cupra emerged as a formidable new force, and Chinese automakers still face an uphill battle in Germany.