The order from the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support brings the number of the vehicles upgraded by Rheinmetall to 177.
The upgrade will mainly improve the vehicle's armor protection against land mines and improvised explosive devices.
"Compared with previous versions of the vehicle, the new 1A8 assures substantially greater protection from land mines and IEDs, which continue to pose a widespread threat in Afghanistan," Rheinmetall said. "It also offers better protection from ballistic fire."
The 25 vehicles that undergoing upgrade are in five configurations: communication vehicles; command and fire control; combat weather section vehicles for indirect fire/joint operations tactical fire support; armored reconnaissance vehicles; and EOD section vehicles.
Rheinmetall said the German army intends to use the vehicles in support of deployed operations abroad and for special pre-deployment training.
The vehicles will be delivered from 2014-16.