Mathilde Carlier
Research Expert covering transportation and logistics
Automotive industry in Germany - statistics & facts
The global influence of the German automotive industry is undeniable: By May 2024, three of the ten largest automotive groups were German, and two of the best-selling car brands of 2023 were headquartered in Germany. However, while the industry boasts a wide international reach, its situation at home has been more precarious. In October 2024, the Volkswagen Group announced mass layoffs and the closure of at least three of its domestic factories. The automotive industry’s ifo business climate index in the country has been in the negatives since June 2023 and has shown little signs of improvement. Production plans have fared better, though as only two in 10 German residents planned to buy a new car in the 12 months following September 2024, the automotive industry faces steep competition between domestic incumbents and international manufacturers.
The German automotive industry is facing challenging times at home, impacted by a negative perception of the business climate and planned layoffs. However, as its production recovers from the supply issues recorded in the early 2020s, it has maintained its global influence, and remains the global automotive trade leader.
Domestic challenges impact the industry’s performance
In the current business climate, the number of companies in the passenger car industry decreased since 2020. Despite this decline in business volume, the industry has consistently been employing more people each year since 2021, the last year when the impact of supply chain shortages led to a drop in workforce volume. Automobile employees sustain a 207.3 billion euros industry, with new car sales representing nearly a third of this revenue. The automotive industry’s revenue increased in 2023, boosted by a positive perception of the business climate in the first half of the year. In parallel, car production also grew, though not quite reaching its pre-pandemic levels. This slow recovery from the production halts recorded in 2020 and 2021 impacts two of Germany’s most prolific manufacturers. As of 2023, the BMW Group was the only one to have surpassed its 2019 vehicle output by some 100,000 units.Germany leads the international automotive trade
While the German industry faced challenges at home, it maintained a positive trade balance in the decade. In 2023, Germany topped the rankings as the leading global exporter of passenger cars and vehicle parts and accessories, while placing third for goods vehicle exports. Despite hurdles regarding its car output, Germany was also among the five leading passenger car producers worldwide, which helps contextualize the success its automotive industry records when trading with other countries. Europe was its main export destination, due to the intra-European Union trade agreements and the preference of European consumers for regional brands. However, on a country level, the United States, China, and the United Kingdom topped the list of German motor vehicle destinations. The U.S. was the largest global automotive importer, while the UK built up a certain level of dependence on European Union imports which remained despite the new Brexit tariffs.The German automotive industry is facing challenging times at home, impacted by a negative perception of the business climate and planned layoffs. However, as its production recovers from the supply issues recorded in the early 2020s, it has maintained its global influence, and remains the global automotive trade leader.
