Germany Car Registrations January 2026 Decline 6.6% as EV Subsidies Await Impact

On February 4, the Germany Federal Motor Vehicle Office (KBA) reported that Germany car registrations January 2026 fell by 6.6% year-on-year to 193,981 units, reflecting slowing economic conditions and a delayed consumer response to the newly announced electric vehicle subsidy program. While several domestic manufacturers recorded lower volumes, Chinese automakers, primarily focused on electric vehicles, significantly increased their presence.

Brand-wise passenger car registrations trend

An analysis of January registrations by brand shows a mixed performance across major manufacturers. Volkswagen registrations declined 17.5% to 38,282 units, retaining a 19.7% market share. Skoda recorded a strong increase of 12.2% to 18,550 units, while Mercedes-Benz fell 6.5% to 18,454 units. BMW registrations rose 5.4% to 17,105 units, contrasting with Audi, which declined 4.0% to 14,054 units. SEAT experienced a sharp contraction of 29.8% to 9,716 units, whereas Opel posted robust growth of 27.4% to 8,829 units, improving its market share.

Performance of international and emerging brands

Tesla showed early signs of recovery, with registrations inching up 1.9% to 1,301 units. Among Japanese manufacturers, Toyota, excluding Lexus, saw a steep decline of 33.8% to 3,595 units. In contrast, Chinese brands expanded rapidly, led by BYD, which surged 1,018.7% to 2,629 units. Leapmotor registrations jumped 344.5% to 689 units, while XPeng rose 247.9% to 327 units. These gains underline growing acceptance of competitively priced electric vehicles from Chinese manufacturers within the German passenger car market.

Powertrain mix and policy impact

Gasoline vehicle registrations dropped 29.9% to 43,695 units, accounting for 22.5% of the market. Hybrid vehicles increased 3.9% to 79,996 units, representing a 41.2% share, supported by a 23.0% rise in plug-in hybrid registrations to 21,790 units. Electric vehicle registrations climbed 23.8% to 42,692 units, reaching a 22.0% share, while diesel vehicles declined 17.1% to 27,309 units. LPG-powered car registrations fell sharply to 280 units, and two fuel-cell vehicles were newly registered, with no additions for natural gas or hydrogen drivetrains. On January 19, the Federal Ministry for the Environment, Germany, confirmed a new EUR 3 billion electric car subsidy program. The scheme covers EVs, PHEVs, and range-extender EVs registered after January 1, 2026, and will run through 2029, supporting expectations of continued growth in electrified vehicle sales. Average CO2 emissions from new passenger cars declined 9.9% to 102.4 g/km, reflecting the rising share of electrified powertrains. In the commercial segment, truck sales fell 21.3% year-on-year to 18,738 units, while bus registrations surged 76.4% to 688 units. According to the German Association of the Automobile Manufacturers (VDA), domestic passenger car production in January decreased 9% to 305,900 units, and exports also declined 8% to 225,300 units, indicating ongoing pressure across the broader German automotive industry.