H. Yoo
Research expert covering South Korea
Automotive industry in Germany - statistics & facts
The global influence of the German automotive industry is undeniable: As of June 2025, three of the ten聽largest automotive groups were German, and two of the best-selling car brands of 2024 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, further job losses across the industry followed. The聽automotive industry鈥檚 ifo business climate index in the country has been in the negatives since June 2023 and has shown limited signs of improvement. Production plans have fared better, though as less than two in 10 German residents planned to buy a new car in the 12 months following September 2025, the automotive industry faces steep competition between domestic incumbents and international manufacturers.聽
Domestic challenges impact the industry鈥檚 performance
In the current business climate, the number of companies in the passenger car industry decreased since 2020. Employee numbers in the sector have equally seen a slow decline in the past years. Automobile employees sustain a 218.9 billion euros industry, with new car sales representing close to a third of this revenue. In parallel, car production remained steady, following two years of growth after the pandemic hit to the industry. This slow recovery from the production halts recorded in 2020 and 2021 impacts two of聽Germany鈥檚 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 2024, 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, the United Kingdom, and China 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.
