Saxony's car manufacturers grow - trend towards e-cars

Saxony's car factories produced more vehicles in 2025 and are relying even more heavily on e-cars. Almost 580,000 cars rolled off the production line in Leipzig, Zwickau and Dresden, according to an analysis by the Chemnitz Automotive Institute (CATI). This is an increase of 1.4 percent compared to the previous year. This shows a further shift from combustion engines to e-cars: production of fully electric vehicles rose by around 20 percent to 288,000.

Every fifth German car is "Made in Saxony"

This means that around every fifth car built in Germany comes from Saxony, and every second car in the case of e-cars, car researcher Werner Olle told the German Press Agency. "Saxony therefore remains a heavyweight among German automotive locations." According to the study, the top 5 e-cars built in the state are led by Volkswagen's ID.3, followed by the Audi Q4 and the Cupra Born. This is followed by the Macan E from Porsche and the Mini Countryman E.

The increase in overall car production is primarily due to a higher production volume at BMW in Leipzig. Around 259,400 vehicles were built there last year. Volkswagen in Zwickau also produced a slightly higher number of units: just under 213,000 e-cars.

Car sales remain well below pre-corona levels

Car sales in the EU rose to 10.8 million (up 1.8 percent) last year and German manufacturers were able to increase their market share in Europe to 39.9 percent, according to the Acea association. However, sales are still well below the pre-corona level of 13 million vehicles in 2019. In addition, there is tough competition for e-cars from China. As a result, Volkswagen, for example, is struggling with overcapacity at its German sites.

In response to this, VW discontinued car production at the Transparent Factory in Dresden at the end of 2025. Capacity will also be reduced at the Zwickau site. Work there will only be carried out in two shifts and staff will be reduced. In addition, several models are to be transferred to other locations. This also has consequences for suppliers and their employees.

Forecast: slight decline in car production in 2026

Olle also points to recent positive news, however - such as the fact that the ID.3 and Cupra Born models will be produced in Zwickau for longer than originally planned. In addition, the Porsche plant in Leipzig was awarded the contract for a new SUV model, known internally as the M1. It is due to roll off the production line there at the end of the decade. "All of this is helping to make the automotive state of Saxony more optimistic about the future again, even if concerns remain, particularly at the location and in the Zwickau region."

For this year, he expects a slight decline in car production in Saxony, explains the expert. This is due to the discontinuation of the Macan as a combustion engine at Porsche in Leipzig and a lower number of units at Volkswagen Saxony. "The BMW plant in Leipzig remains in the fast lane thanks to its flexible drive mix," he predicts. Unlike the VW plant in Zwickau, which has switched completely to electric cars, BMW in Leipzig flexibly builds cars with both combustion engines and electric motors.