What's Driving the Boom?
Economy / Finance

What’s Driving the Boom?

Germany’s automotive exports remain robust through the first five months of 2025, according to data released by the Federal Statistical Office (Destatis). Approximately 1.5 million new cars, valued at €57.9 billion, were shipped from Germany during January to May 2025. This represents a 1.1% increase in volume compared to the same period in 2024, with a corresponding 0.4% rise in value.

Automotive exports accounted for 8.8% of Germany’s total export volume during this period, a figure unchanged from the previous year. The United Kingdom, the United States and Italy remained the top destinations for German-manufactured vehicles, receiving 32.2% of total exports. The UK received approximately 183,000 vehicles (12.4%), followed by the US with 181,000 (12.3%) and Italy with 111,000 (7.5%).

While vehicles with internal combustion engines (ICE) comprised the largest share of exports (52.1%), electric vehicle (EV) exports are experiencing notable growth. A total of 416,000 electric vehicles were exported, a 25.3% increase year-on-year. Hybrid vehicle exports also rose, with 289,000 units shipped, representing a 10.7% increase. The trend is even more pronounced when examining value: ICE vehicle exports decreased by 17.0% by value, compared to a 27.2% increase in EV exports and a 20.6% rise for hybrid vehicles.

Exports to the United States, however, saw a slight decrease, with 181,000 vehicles shipped, representing a 1.9% decline in volume and a 3.2% decline in value compared to the first five months of 2024. ICE vehicles continued to dominate US-bound exports, accounting for 56.4% of the total, while EVs comprised 25.7% and hybrids 17.9%. Hybrid vehicle exports to the US demonstrated the most significant growth, increasing by 36.3% year-on-year, while EV exports experienced a modest 3.2% increase. Notably, export volumes to the US fluctuated throughout the period, with a 14.7% increase in the first quarter, followed by a 23.5% decrease in April and May.

Germany continues to import a substantial number of new vehicles; 741,000 units, valued at €21.1 billion, entered the country between January and May 2025. This represents a 5.7% and 3.5% decrease in volume and value, respectively, compared to the same period in 2024. Spain emerged as the leading supplier, accounting for 14.5% of imports (107,000 vehicles), followed by the Czech Republic (13.6%) and Slovakia (11.0%). Vehicle imports from China increased to 45,000 units, climbing to the fourth-largest origin country, surpassing the import volume from the United States, which declined by 30.3% to 40,000 units placing it at number five.

ICE vehicles continue to be the dominant powertrain type in imports, accounting for 57.3%, followed by hybrids at 26.7% and EVs at 16.0%.