German car production drops 3% in first half
German automakers produced 2.1 million passenger cars from January through June this year, down by 3% versus the first half of 2025, Kallanish learns from automotive association VDA.
June saw a 6% year-on-year increase against the same month one year previous, with 377,700 passenger cars rolling off German assembly lines. However, VDA cautions that this micro-trend must be viewed primarily against the backdrop of two additional working days compared to June 2025.
After six months, production remains 15% below the pre-Covid levels of 2019 and earlier. Germany remains under pressure from challenging conditions like high non-wage labour costs and taxes, high energy and bureaucratic costs, VDSA bemoans.
The federation has reason for its warnings. In the last two weeks, reports of plant closure plans at German carmaker brands have unsettled industries and the economy. Large-scale layoffs could occur at Volkswagen, and, to a lesser extent, at Porsche.
In terms of exports, at 287,700 units, exports in June exceeded the figure for the same month last year by 7%. Since January 1.605 million passenger cars have been exported, a drop of 3% vs the first half 2025.
Despite growing trade barriers with key partner countries, more than three out of four passenger cars from German assembly lines were exported over the course of the year, VDA says.
The federation underlines a relatively strong share increase for electric vehicles. In June, new registrations of electric vehicles rose by 60% y-o-y to a volume of 116,300 units. The EV share of total registrations reached 39%. VDA here gives only the number of registrations, not of production, so the figure will include imports.
From: Kallanish
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