Germany to register 693,000 fully electric cars in 2026

Germany is expected to register around 693,000 new battery electric vehicles (BEVs) next year, the German Association of the Automotive Industry (VDA) said on Monday.

This would represent an increase of roughly 30% compared with projected 2025 figures.

Including other alternative drivetrains such as plug-in hybrids, the VDA expects nearly 1 million new registrations of vehicles with electrically assisted powertrains.

Registrations of new plug-in hybrids are expected to fall slightly, by about 5% to 286,000 vehicles.

The forecast for fully electric cars is slightly below that of the Association of International Motor Vehicle Manufacturers, which anticipates around 740,000 new BEVs next year – assuming the government’s planned incentives for private EV buyers come into effect. The VDA said the same condition applies to its own estimates.

For the overall market, the VDA expects only a modest recovery. Total new passenger car registrations across all powertrain types are projected at 2.9 million next year, a rise of about 2% from 2025. This remains well below the pre-pandemic record year of 2019, when new registrations stood at about 3.6 million.

Germany extends tax exemptions for electric vehicles until 2035

Earlier, the German lower house of parliament has decided to extend tax exemptions for electric vehicles by five years, aiming to make the purchase of electric cars more attractive.

Under the law, electric cars first registered by the end of 2030 will remain exempt from motor vehicle tax for up to 10 years, but no later than December 31, 2035. Buyers who switch to electric vehicles close to the deadline would enjoy only a five-year exemption.

Without the parliamentary decision, the exemption would have expired at the end of the year. The government estimates that the extension will reduce tax revenues by around €1 billion ($1.2 billion).

Hauke Finger of the far-right Alternative for Germany (AfD), the only party to vote against the measure, accused the government of “throwing money out the window on a whim.”