german automotive industry overview

by Alysa Huels MD Published 4 years ago Updated 3 years ago

Overview of the Automotive Industry in Germany

The industry at a glance. The automotive industry has a great reputation. ...
International Trade. The competitive advantage of the German automotive industry, as a leading force in exports, is its focus on the higher-priced vehicle segments.
E-Mobility and Connectivity. ...
The COVID-19 Pandemic. ...
Centurion Plus. ...

German automobile manufacturers produced over 16 million vehicles in 2019. Eighteen of the world's 100 top automotive suppliers are German com- panies. Germany is the European car production leader: more than 4.6 million passenger cars – and 283,567 commercial vehicles – were manufactured in German plants in 2019.

Full Answer

Why the German automotive industry?

Further, the country’s outstanding R&D infrastructure, complete industry value chain incorporation and highly skilled workforce build an internationally superior automotive environment. Germany is Europe’s largest automotive industry in terms of production and sales of automobiles.

What are the major car manufacturers in Germany?

Current major manufacturers in Germany are Audi, BMW, Ford-Werke GmbH, Mercedes-Benz, Opel, Porsche, and Volkswagen. In 2019, the Volkswagen Group topped a ranking of leading motor manufacturers based on global sales, with almost 11 million units sold worldwide in 2019.

How many German cars are imported to the US each year?

As of 2018, 25.48 billion euros worth of German cars were imported to the United States. In terms of passenger car brands, German ones were the most popular domestically. In 2019, the number of registered VW cars amounted to roughly 10 million, followed by 4.5 million Opel vehicles and 4.43 million Mercedes cars.

What is the future of the automotive industry?

The industry will continue to grow by following all the technological trends focusing on sustainable mobility, car connectivity, and e-mobility to increase the safety and comfort of the cars in the future.

Why is the German car industry so successful?

Precision Engineering. German cars are built by highly professional engineers that choose a vocational track before they even complete their equivalent of high school. Manufacturing is a respected field in the country, and the people take pride in the craftsmanship their car brands have built a reputation for.

What percentage of Germany economy is auto industry?

The auto industry represents 5% of the country's GDP and 820,000 jobs, according to The Financial Times.

How big is German automotive industry?

Automotive Industry & Market Numbers The automotive industry is the largest industry sector in Germany. In 2021, the auto sector listed turnover of EUR 410.9 billion – around 20 percent of total German industry revenue.

How is the German car industry doing?

After contracting 28.7% in 2020, German motor vehicles output is forecast to decrease again in 2021, as the current semiconductor shortage severely affects production. Domestic production of passenger cars declined 38% year-on-year in October 2021, while new car registrations decreased 35%.

Does Germany make the most cars?

Being home to the modern car, the German automobile industry is regarded as the most competitive and innovative in the world, and has the third-highest car production in the world, and fourth-highest total motor vehicle production.

How many Germans work in the automotive industry?

The German automotive supplying industry employed a workforce of around 311,000 people in 2019. They also serve Europe's largest automotive market, where more than 4.6 million passenger cars and 283,567 light commercial vehicles were produced in the same year (2019).

Is the German car industry in trouble?

The Ifo Institute, based in Munich, has warned confidence has slashed to a six-month low following prolonged shortages in September, leading to the world's largest car industry to plunge. Ifo said: “The situation in Germany remains critical: order books fell from 17.1 points in August to 5.3 points [in September].

Which is the best German automaker?

The eight best German cars to buy in 2021Volkswagen Golf R. ... Porsche 911 Carrera. ... BMW M2 CS. ... Mercedes-AMG GT Black Series. ... Audi RS6. ... Ruf CTR Anniversary. ... Wiesmann Gecko. ... Apollo IE.

Who regulates automotive industry in Germany?

the German Federal Motor Transport AuthorityType approval is granted and monitored by the German Federal Motor Transport Authority (KBA) and can be generally obtained under three different regulatory frameworks: the United Nations Economic Commission for Europe (UNECE), the EU and the German type approval frameworks.

Are German car manufacturers worried about Brexit?

German car makers urge overcoming “the practical hurdles” “This outcome has eliminated the risk of a 'no deal' Brexit and at last companies can concentrate on implementing a free trade agreement,” she said. The UK is the largest foreign export market for German OEMs.

How many cars did Germany make in 2020?

Car production in Germany in 2020 was down by a quarter to 3,508,500 vehicles — more than a million fewer than the 4,661,800 cars produced in Germany in 2019 according to the VDA.

How many cars did Germany make 2020?

In 2020, 2.65 million vehicles were exported from Germany.

Is Germany famous for cars?

Germany is known throughout the world for providing quality reliable cars that last a lifetime and that comes from the country's involvement with the industry from the very first motor vehicles, with Carl Benz designing the very first motor vehicle to use an internal combustion engine and electric ignition.

How many cars are there in Germany in 2019?

In 2019, the number of registered VW cars amounted to roughly 10 million, followed by 4.5 million Opel vehicles and 4.43 million Mercedes cars. Volkswagen’s Golf and Tiguan were the leading car models in Germany, based on new registrations.

How much did Germany export in 2019?

The total weight of cars exported from Germany in 2019 was roughly 17.8 billion tons, while export value amounted to 217.8 billion euros. German vehicles were mainly exported to European countries. Other leading regions for vehicle export included North and South America, as well as Asia.

How many cars did Volkswagen sell in 2019?

In fact, the Volkswagen Group topped a ranking of leading motor manufacturers based on global sales, with almost 11 million units sold worldwide in 2019. The Volkswagen Group was also the leading car manufacturer by production volume in Germany.

What is the automotive industry in Germany?

Automotive industry in Germany. Germany is one of the world’s leading car producers and is well-known for its excellence in the automotive industry. Germany is the place where modern cars were produced. Today, the automotive industry in Germany is one of the most innovative and competitive industries, having the third-highest car production in ...

What are the major automobile companies in Germany?

Current major manufacturers in Germany are Audi, BMW, Ford-Werke GmbH, Mercedes-Benz, Opel, Porsche, and Volkswagen.

What does Audi mean in German?

Audi in German means “listen. ”. In 1932 Audi merged with Horch, Wanderer, and DKW to form Auto Union UG. That’s where the four linked rings in the Audi logo come from. Then, in 1966, they became part of the German automobile giant: the Volkswagen Group.

What does the Mercedes-Benz logo mean?

If someone drives a Mercedes brand vehicle, it’s naturally assumed that they have money, and the Mercedes-Benz logo has become synonymous with quality, emblazoning some of the best cars in the industry. Over the years they’ve produced numerous types of vehicles including trucks, limousines, vans, and buses.

How many cars did Germany produce in the 1900s?

The car production in Germany started in 1870 and grew significantly over the last century from producing around 1000 cars per year in the 1900s to over 15 million in recent years. Last year, Germany produced 6 million passenger cars and 0.5 million commercial vehicles.

Which car manufacturer is the leading in Germany?

The Volkswagen Group was also the leading car manufacturer by production volume in Germany. The Daimler AG was further behind with 3.36 million vehicles on the market, and the BMW Group brought up the top three with 2.54 million cars.

Where is BMW located?

BMW. BMW has been around since 1916 and is headquartered in Munich, Bavaria. It was founded by Franz Josef Popp and it stands for Bayerische Motoren Werke (Bavarian Motor Works), often recognized instantly by the iconic BMW logo. Their greatest successes come from the engine, which continues to improve over time.

How many automobiles are made in Germany?

Germany is having 41 automobile assembly and engine production plants with a capacity of over one-third of Europe’s total automobile production. Out of top Global 100 Automotive suppliers, 21 of the suppliers are German companies.

How many Germans own cars?

More than 80 percent of Germans own their own car. Around 88% of the German population own at least one car. German cars and commercial vehicles are known for its innovation, Engineering, Comfort, Features, product age, reliability, safety, and design.

What are the challenges of electric cars?

Electric cars are on a breakthrough, and even faster than expected. The major challenges are charging infrastructure, range anxiety, and pricing. OEMs are authorities are working on those issues and expected to address it by 2025. Electric passenger cars will dominate the market with more than 90% market share.

What is the most popular media in the auto industry?

However, online media are one of the most popular media to get first-hand information on the auto industry. ACG also expected to see double digit growth in digital media by 2020. Artificial intelligence will also play an important role in influencing customer decision by 2030 as per our study on Auto Industry.

What is Germany's economy?

The German economy – the 5th largest economy in the world in PPP terms, Europe's largest – is a top exporter of vehicles, machinery, chemicals, and household equipment and the largest population in the European Union. The fundamental of the country economy is strong and domestic demand is rising.

Why are long distance buses in demand in Germany?

The long-distance buses are in demand in Germany to give a boost to the market. New bus route expanded, fuel price, comfort, and other market dynamics support the growth. Buses carry over 5 billion passengers annually, which is around half of the capacity of local public transport in Germany.

When will Germany's population decline?

The population in Germany expected to decline until 2030, and at the same time the people of more than 65 years will rise and the people below 20 years is expected to fall. This equation does not give the good sign for Industry and its requirements of the talent pool.

How much did Germany's automotive industry make in 2015?

German automotive industry accounted for approximately US D 322.0 billion in 2015 generated from foreign markets. Germany’s automotive industry is also one of the most innovative industries with R&D investments amounting to USD 24.1 billion in 2014.

Why is Germany important?

Germany is acknowledged across the globe for its exceptional automotive industry and superiority in engineering. From Asia to the Americas, the German cars represent highly appreciated values of innovation, dependability, safety, and design.

1. Introduction

Nowadays, “Germany is the third largest manufacturing country for passenger cars and commercial vehicles, one in ten of all vehicles produced worldwide comes off a production line in Germany” (VDA 2006, 181).

2. Description of the German automotive industry

According to Verband der Automobilindustrie (VDA) the automotive industry in Germany affects the national growth and employment significantly (VDA 2006, 3). In 1990 20% of Germanys GDP stemmed from this sector (VDA 2006, 3). The centre of this industry is located in Baden-Württemberg (EFILWC 2004a, 3).

3. Government policies impacting on the industry

The European Commission asserts that “the competitiveness of the automotive industry, and the European economy, depends on a coherent and cost-effective regulatory framework” (Appendix B) (2004, 226).

3.2 The German regulatory environment

Direct charges for road use are becoming an increasingly attractive option (EFILWC 2004b, 4) in Europe (Downs and Livingstone 2003) and Germany also started, on the 1st of January 2005, to charge a toll for trucks (Blau 2005, 12; Koenig 1999, 16A).

International Trade

The competitive advantage of the German automotive industry, as a leading force in exports, is its focus on the higher-priced vehicle segments. German companies dominate around 70% of the market for premium automobiles. This approach is evident in the production part of the industry …

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E-Mobility and Connectivity

The automobile industry is challenged by the emergence of advancing technology which is shifting toward electric powertrains. Therefore, the sector is in the process of adaptation wherein manufacturers and suppliers are forced to invest massively in E-mobility. In 2019, alternative drives have gained great significance in the German automotive market. Purely electrically powe…

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The Covid-19 Pandemic

The outbreak of the COVID-19 pandemic has severely affected the automotive industry as global supply chains were disrupted and sales decreased immensely. In spring, most of the manufacturing was low and 60% of the workforce was on short-time working. In China, the US, and Europe 28%fewer passenger cars were sold in 2020. However, in 2021, sales are predicted t…

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Centurion Plus

Are you interested in investing in the automotive industry or establishing your company in Germany? Next to a stable and growing economy, qualified workforce, excellent location in the heart of Europe; the German automotive industry attracts investors with its standing as a market leader and role mole in terms of R&D. There is also profound infrastructure between suppliers a…

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