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Electric cars drive growth, but the automotive industry remains under pressure

Electric cars are driving growth

The most important points in brief:

E-mobility supports the automotive market, production and exports continue to weaken

Despite the current boom in Electric vehicles came the German Automotive industry will not rest in June 2026. Although two additional working days and the demand for e-cars are ensuring solid monthly figures, production and exports are lagging behind the previous year for the entire first half of the year. The gap to the pre-crisis level of 2019 remains large, as high costs, bureaucracy and expensive charging electricity are hindering a genuine recovery.

Key Facts

 

  • Production & Export: In June, around 377,700 passenger cars rolled off the production line – a six per cent increase, which is primarily due to the two additional working days, however. Overall, the half-year results for production and export are in decline.
  • Pressure factors: Manufacturers are primarily struggling with high wage and energy costs in Germany, as well as increasing bureaucracy.
  • New registrations & orders: Around 296,400 new registrations in June sounds good at first, and the first half of the year is also above the previous year. However, because orders from abroad are collapsing, the domestic increase is not enough for a trend reversal.
  • Boom in electromobility: Pure electric cars (BEVs) are growing strongly. Their share of new registrations climbed to 39 percent, driven by new government incentives and a wider choice of models.
  • Charging current problem: For the e-car boom to continue, charging current prices in Germany urgently need to fall – they are currently considered the biggest obstacle.

Production and exports are developing at a subdued pace

According to the current press release, around 377,700 passenger cars were built in Germany in June 2026. This corresponds to an increase of six per cent compared to the same month of the previous year. However, according to official figures, this growth is mainly due to two additional working days compared to June 2025. Production year-to-date remains below the previous year's figure and significantly below the 2019 level. Reasons cited in the report include high wage and energy costs, as well as increasing bureaucracy. A similar picture emerges with exports: although slightly more were delivered abroad in June, exports for the first half of the year fell slightly overall.

More new registrations despite fluctuating demand

According to the press release's surveys, new car registrations in June rose significantly to around 296,400 vehicles. In the first half of the year, too, more vehicles were newly registered than in the same period of the previous year. Nevertheless, the German automotive market remains significantly below the pre-crisis level of 2019. The analysis shows that while domestic new orders increased noticeably, orders from abroad collapsed. In total, manufacturers recorded fewer new orders than in the previous year's month.

Electromobility continues to gain importance

As the publication shows, recorded Electric vehicles particularly strong growth in June. Battery electric vehicles (BEVs) in particular saw massive increases, raising the proportion of electrified vehicles in all new registrations to 39 per cent. The paper points out that this development is supported, among other things, by a larger range of vehicles from manufacturers and the new government e-funding. At the same time, the text emphasises that high electricity prices for charging continue to be a barrier to the further expansion of electromobility in Germany and should therefore be reduced.

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