Tesla Falls to Fourth Place in Germany Despite Price Cuts as Chinese Brands Narrow Gap with Mercedes

Germany's electric vehicle market witnessed significant shifts in the second quarter of this year, with BMW reclaiming the second position in new EV registrations. The German automaker surpassed Tesla, which dropped to fourth place despite aggressive price cuts by Elon Musk's brand. This reshuffling coincides with Chinese automakers rapidly closing the gap with established rivals such as Mercedes-Benz.

New Rankings in the German Market

According to data from the German Federal Motor Transport Authority, Volkswagen maintained a clear lead in the market, registering 25,600 new electric vehicles in the second quarter. BMW secured second place with over 19,000 units, followed by Skoda with 18,700 units. Tesla came in fourth with 16,000 units, Mercedes-Benz registered 15,700 units, and Audi followed with 12,400 units.

This marks a stark contrast from the first quarter, when Skoda held second place, followed by Tesla and Audi. BMW was in fifth and Mercedes in sixth. The shift underscores the fierce competition in Germany's EV market, with brand standings changing rapidly quarter over quarter.

Price Reductions and Tesla's Performance

Despite falling from the top three, Tesla has performed significantly better compared to the same period last year, when its sales were hurt by Musk's political involvement. In the first half of 2025, Tesla sold about one and a half times the number of cars it sold in all of 2024 in Germany. Automotive expert Ferdinand Dudenhöffer attributed this improvement to substantial price cuts, noting that at the start of the year, prices for the Model 3 and Model Y dropped by several thousand euros. "These are relatively old models, but they have become competitive thanks to their prices, which is also reflected in registration numbers," he said. Dudenhöffer added that price reductions may also have helped BMW, which is currently offering significant discounts. He noted that BMW's new "Neue Klasse" series likely hasn't had a major impact yet, as deliveries have not started on a large scale.

Rising Chinese Presence in Germany

Chinese automakers are playing a growing, though still limited, role in Germany's car market, particularly in the EV segment. BYD registered more than 6,000 new electric cars in the second quarter, while Leap Motor recorded around 5,000 units. Both MG Rover and Xpeng registered over 2,000 units each. With these figures, Chinese brands are rapidly closing the gap with competitors like Mercedes-Benz, intensifying the challenge for European and American automakers in the German EV market.