Comparatively few start-ups in the German automotive industry
There are comparatively few successful start-ups in the automotive industry in Germany. This is the result of a study conducted by the Startup Association on behalf of the neu/wagen transformation network, which was published in Berlin on Thursday. According to the study, the automotive industry in Germany generates 3.5 percent of the gross domestic product.
This share is significantly higher than the figure of 0.6 percent in the USA. However, despite the great importance for the German economy, three times as much per capita is invested in start-ups in the USA in this sector, which indicates a stronger focus on innovation compared to production. Asian countries such as China and India are also strongly represented.
According to the association, there is a risk that Germany will lose touch in this field of innovation: the largest investments ("exits") in recent years have been concentrated in the start-up ecosystems in the USA and Asia. Only one European company, Northvolt from Sweden, is currently among the five best-funded mobility start-ups.
According to the study, the hardware-based area only accounts for around 11 percent of the sector's young companies - almost one in five start-ups is based in the automotive software area.
It is striking that the mobility start-ups in Germany are concentrated in well-known automotive locations, for example in the Hanover/Hildesheim region. The Volkswagen Group and Continental, among others, are active there. Collaborations with established companies have proven to be particularly promising and can be expanded as a significant strength, emphasized the startup association.
In the German automotive industry, investing in car-focused start-ups could significantly boost finances and innovation. Despite the successful automotive start-ups in locations like Hanover/Hildesheim, there's a need for more investments in this sector to maintain a competitive edge with countries like the USA and Asia.
Source: www.dpa.com
