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 published by the Startup Association on behalf of the neu/wagen transformation network. 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.
Danger of Germany losing touch
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.
The lack of significant investments in German automotive start-ups compared to the USA and Asia could potentially lead to Germany losing its innovative edge in the automotive industry. Despite the success of traditional automotive companies in Germany, the majority of funding goes to start-ups in the USA and Asia, particularly in the software sector.
The German automotive industry needs to invest more in start-ups, particularly those focused on hardware, to keep up with the innovation pace set by countries like the USA and Asia. The high concentration of start-ups in traditional automotive hubs, such as Hanover/Hildesheim, could benefit from broader collaboration with international start-ups to foster innovation within the sector.
Source: www.dpa.com
