Germany’s car industry, once a global leader, is showing signs of recovery. Domestic EV sales are rising, with Volkswagen’s ID.7 overtaking Tesla’s Model Y. New affordable models like the ID.2all aim to win back mass-market buyers. Tariffs slow Chinese competition, but challenges remain: charging infrastructure gaps, hesitant private buyers, and global pressure. Experts say the industry must fully embrace electrification to survive and meet EU climate goals.