Force India overtook Williams for fourth position after Nico Hulkenberg and Sergio Perez bagged 22 points by finishing fourth and fifth.
Nico Rosberg's win saw him close the gap on teammate Lewis Hamilton, who finished third behind Red Bull's Daniel Ricciardo.
Lewis Hamilton will start from the last row or the pit lane after being hit with a 55-place grid penalty.
Max Verstappen beat Sebastian Vettel's leading time to move into contention, only for Nico Rosberg to beat Verstappen's mark and clinch pole.
Red Bull, the only team other than Mercedes to win a race this year, have made significant gains of late.
McLaren team replaced Fernando Alonso's power-unit with a fresh one which will cost him 35 places on the grid.
Lewis Hamilton took a two 15-place grid penalties in two practice sessions for having changed too many engine parts this season.
Nico Rosberg set a pace of one minute 48.348 seconds, 0.730 seconds ahead of Mercedes team mate Lewis Hamilton.
Lewis Hamilton, who leads Mercedes team mate Rosberg by 19 points in the championship, will start from near the back of the grid.
Lewis Hamilton is set to take a hefty penalty for exceeding his allowed allocation of engine components.
Chasing his first F1 title, Nico Rosberg has appeared to wilt under pressure over the past few races, handing the initiative back to Lewis Hamilton.
Lewis Hamilton's win in Germany last month was number 49, and only Michael Schumacher (91) and Alain Prost (51) have reached the half century.
Chris Amon competed in Formula One between 1963 and 1976, starting 95 races, taking five pole positions and finishing on the podium 11 times.
Hockenheim was reluctant to bear the cost for a third year in a row after suffering substantial losses in 2014.
Lewis Hamilton overtook his team mate Nico Rosberg, who was in pole position, at the start and crossed the finish line.
Nico Hulkenberg used a set of tyres in the opening phase of qualifying that his Force India team had returned to supplier Pirelli.
Lewis Hamilton failed to record a good enough lap to secure pole position on his final qualifying attempt at the German Grand Prix.
Mercedes team mate Lewis Hamilton, who locked up on his final run, will start second after being 0.107 seconds off his rival's time of one minute 14.363.
Nico Rosberg heads into Sunday's race at the 4.5-km Hockenheim track trailing Lewis Hamilton by six points in the standings.
Jost Capito said India is a fast developing economy and it is only good for the sport to be there.
IWF said the doping results produced by Russian weightlifters are 'extremely shocking and disappointing.'
Paddy Lowe cleared the controversy by saying that Hamilton visited to understand what has to be done in future rather than review Nico's lap.
Lewis Hamilton currently holds a six-point lead over Nico Rosberg at the top of the standings after winning the Hungarian GP.
Nico Rosberg set his fastest time of one minute 15.517 seconds in the opening 90-minute session.
Nico Rosberg conceded the lead in the title battle to Lewis Hamilton in the last race in Hungary, dropping six points behind him.
The push for cockpit protection has gathered urgency after the deaths last year of Justin Wilson and Jules Bianchi.
Rio Haryanto's main sponsor is oil company Pertamina, which has contributed five million euros towards the funding needed to secure his seat
James Allison spent three years in his second stint with Ferrari, before he was at Ferrari during Michael Schumacher era of 2000 to 2004.
Nico Rosberg had a 43-point lead after the Spanish Grand Prix but is now six points behind Lewis Hamilton at the halfway point of the season.
Fernando Alonso finished seventh in last week's Hungary Grand Prix and is now preparing for this weekend's German Grand Prix.
Lewis Hamilton seized the lead from Mercedes team mate and title rival Nico Rosberg after an unprecedented fifth victory.
Jolyon Palmer has retired in four of the eleven races so far with a best finish of 11th in the season-opening Australian Grand Prix.
Drivers are required to reduce speed significantly and be prepared to change direction or stop under double waved yellow flags.
Arjun Maini secured ninth position with a best lap of 1:33.874 after the session was red flagged.
Lewis Hamilton, who has now won in Hungary a record five times, leads Nico Rosberg by six points after 11 of the season's 21 races.
In the double header, Armaan Ebrahim and Dilantha Malagamuwa, driving team Dilantha Racing, finished third in the first race on Saturday.