Self-production of cars is being expanded by German automakers, making them prominent figures in the manufacturing process
In the wake of stricter EU CO2 regulations that have been in effect since the beginning of the year, German car manufacturers are taking proactive steps to increase the number of electric vehicles (EVs) in their fleets. This move is crucial for meeting fleet limits and reducing carbon emissions.
One of the key tactics these manufacturers are employing is boosting the production volume of EVs. Companies like BMW and VW have significantly ramped up production to meet rising demand and register more EVs domestically. In the first half of 2025, German carmakers produced a record 635,000 battery electric cars, accounting for about a quarter of total car production in Germany [1]. BMW alone delivered over 318,000 fully electric and plug-in hybrid vehicles in the same period [4].
Competitive pricing and incentives are another strategy being used. Manufacturers align their pricing strategies to benefit from Germany's supportive tax environment for EVs. For instance, unlike countries like Turkey with high vehicle taxes, Germany imposes no special consumption tax on electric cars, exempts EVs from the annual motor vehicle tax for 10 years, and includes VAT already in sticker prices. This tax advantage enables manufacturers to offer EVs at attractive prices, further supported by extra incentives such as free parking in certain states and favorable registration policies [3].
German carmakers are also focusing on growing their share in the domestic EV market as some competitors falter. For instance, VW and BYD have increased their sales in the EU as Tesla sales decline, augmenting manufacturer registrations tied to their brands [2].
Another factor contributing to higher EV registrations is the full availability of models and the launch of new models. BMW, for example, offers a broad lineup of more than 15 fully electric models, increasing customer choice and likely boosting registrations. Healthy growth in plug-in hybrid (PHEV) registrations, up nearly 29% year-on-year for BMW, also contributes to overall electrified vehicle registrations [4].
Navigating import tariffs is another tactic being used. Some manufacturers avoid high import duties by producing vehicles locally in Germany or Europe. For example, BMW and Mercedes models made in Germany and Hungary face no 25% import duty, unlike imported models from non-EU countries [5]. This encourages domestic registrations.
In addition to these strategies, some manufacturers, including Audi, Porsche, and BMW, are registering vehicles themselves to sell them later as dealer registrations with high discounts. This practice is particularly common with electric cars. The Mini brand, for instance, has implemented a new agency model, leading to more manufacturer registrations [6].
Tactical considerations, such as placing models with weak demand as company cars or employee vehicles, are also behind manufacturer registrations. BMW retains showroom, test, and employee vehicles and records them differently [6].
In summary, German car manufacturers are increasing EV registrations primarily by scaling up domestic EV production, aligning pricing to exploit tax incentives, expanding model availability, and focusing on markets where they have competitive advantages over rivals. Government incentives and favourable registration policies also play an important role in facilitating higher manufacturer registrations of electric cars in Germany [1][3][4][5].
In alignment with their efforts to expand electric vehicle (EV) production, German car manufacturers are positioning themselves competitively within the finance industry by adjusting pricing strategies to leverage favorable tax environments and incentives. For instance, BMW's delivery of over 318,000 electric and plug-in hybrid vehicles in the first half of 2025 can be attributed, in part, to such favorable financial conditions.
Moreover, in the transportation industry, these manufacturers are strategically focusing on growing their share in the domestic EV market, with some, like VW and BYD, experiencing growth as competitors like Tesla face declining sales within the EU, boosting overall manufacturer registrations tied to their brands.
