Germany E-SUV Market Size, Share and Growth Report - Forecast Trends and Outlook (2025-2034)

The Germany E-SUV market reached around USD 20.08 Billion in 2024. The market is projected to grow at a CAGR of 15.80% between 2025 and 2034 to reach nearly USD 87.07 Billion by 2034.

Germany E-SUV Market Growth

Between January and August 2024, nearly 51% of all new battery electric vehicles purchased in Germany were Sports Utility Vehicles (SUVs), as per the Federal Motor Transport Authority. This highlights the soaring appeal for electric SUVs among German consumers, due to their rugged construction, higher ground clearance, and the provision of an elevated driving position, which reduces the risk of road accidents. While merely 26% of all new vehicle registrations were small and compact cars during this period, over 50% of them were SUVs, which accounted for nearly 40% of all new EV registrations in the country. Over the forecast period, innovative models and product launches are expected to drive the market.

By 2030, Germany aims to increase the EV adoption rates to 15 million units by expanding its network of EV charging infrastructure (currently at over 100,000 units) and making EV production substantially cost-effective for automotive manufacturers. Germany is expected to produce 20%-25% of Europe’s new EVs, while it its currently the continent’s leading automotive producer, followed by Spain (256,000) and France (225,000). Increasing investments in battery technology development as well as strengthening global supply chains is expected to bolster the market growth in the coming years.

Key Trends and Developments

Increasing investments in semiconductor production; rising preference for compact SUVs; growing focus on enhancing passenger comfort; and the adoption of innovative marketing strategies are boosting the Germany e-SUV market expansion

July 2024

Ford Motor Co. is expected to launch a fully electric vehicle model known as Puma Gen-E in Europe at a starting price of around $40,000.

May 2024

Volkswagen AG began work on designing the fully electric model of the all-new Golf EV for European consumers, with the objective of making 80% of all its cars electric across Europe.

August 2023

Taiwan Semiconductor Manufacturing Company announced its decision to invest nearly EUR 3.5 billion to establish a new production facility in Dresden, in a joint venture with other companies, which is expected to fuel the growth of the Germany automotive industry.

June 2023

Ford Motor Co. announced its decision to invest $1 billion in transforming its Cologne-based manufacturing facility to upscale the production of electric vehicles. The new facility is expected to manufacture 250,000 EVs annually and bolster Ford’s goal of selling 600,000 EVs across Europe by 2026.

Increasing investments in semiconductor production

The market growth is being driven by increasing production of automotive semiconductors, such as automotive microcontrollers, which control and monitor a wide range of automotive components, such as electric powertrain, ADAS, E/E architecture, and radar and chassis. This is critical for manufacturing modern, state-of-the-art electric vehicles.

Rising Preference for Compact SUVs

Major automotive companies are introducing a range of new models of compact SUVs since they are versatile, affordable, and feature all-drive types that ensure a safe driving experience in all weather conditions.

Growing Focus on Enhancing Passenger Experience

Major automotive manufacturers are offering customisable sunroofs for their vehicles, along with advanced HMI (human machine interface) displays to enable automotive drivers to seamlessly control the in-cabin experience and improve passenger comfort and experience.

Adoption of Creative Marketing Strategies

Major luxury automakers in Germany implement unique marketing strategies to rival their competitors and obtain consumer attention.

Germany E-SUV Market Trends

The investment made by Taiwan Semiconductor Manufacturing Company has received EUR 5 billion of financial support from the German government to promote the growth of the domestic automotive industry. The TSMC has established a joint venture with Infineon Technologies, Robert Bosch, and NXP Technologies, which hold a stake of 10% each in the company. The facility is expected to produce nearly 40,000 wafers per month upon becoming operational in 2027.

Germany Industry Segmentation

Short Description: The report titled “Germany E-SUV Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type:

• Mid-Size
• Full Size
• Compact

Market Breakup by Propulsion:

• Battery Electric Vehicles (BEVs)
• Plug-In Hybrid Electric Vehicles (PHEVs)

Market Breakup by Drive Type:

• FWD
• RWD
• AWD

Market Breakup by Region:

• North Rhine-Westphalia
• Bavaria
• Baden-Württemberg

Germany E-SUV Market Share

Based on region, the market is segmented into North Rhine-Westphalia, Bavaria, and Baden-Württemberg. North Rhine-Westphalia dominated the market, representing 20.4% of the overall market share in 2023. Over the forecast period, Bavaria is estimated to grow at a CAGR of 16.2% as a result of the rapid adoption of electric vehicles among consumers.

Leading Companies in the Germany E-SUV Market

Prominent automotive manufacturers in Germany are revamping their existing production facilities to obtain the benefit of government subsidies and introduce the latest EV models that appeal to the requirements of eco-conscious consumers at cost-effective rates.

Tesla Inc.

Tesla Inc. is an American multinational company that was formed in 2003 and is headquartered in Texas (USA). It is engaged in manufacturing luxury electric vehicles and unique clean energy products to enable the transition towards sustainable means of transportation.

BMW AG

BMW AG is headquartered in Munich and was founded in 1916. It is the world’s leading producer of premium automobiles and motorcycles, with a sales network spanning over 140 nations.

Volkswagen AG

Volkswagen AG is headquartered in Wolfsburg and was founded in 1937. It is the world’s leading manufacturer of hybrid electric cars and autonomous vehicles. The company is present in nearly 153 nations worldwide and operates around 114 production plants globally.

Mercedes-Benz Group AG

Mercedes-Benz Group AG is headquartered in Stuttgart and was founded in 1926. It is engaged in the production of luxurious commercial and passenger vehicles.

Other major market players are BYD Co. Ltd., Ford Motor Co., AB Volvo, Toyota Motor Corp., Nissan Motor Co. Ltd., and Hyundai Motor Co., among others.