In the first half of the year, the German automobile sector holds the leading position.
German car juggernauts like VW, Mercedes, and BMW are struggling to meet their sales objectives. According to the Federal Statistical Office, revenue decreased by 4.7% in the initial six months of the year. The total revenue generated by the automotive sector, excluding suppliers, was approximately 269.5 billion euros. However, compared to the record 282.6 billion euros in the first half of 2023, there was an increase due to price hikes. Despite the decline, the auto industry continues to lead the pack in terms of sales revenue in Germany, accounting for 25.2% of the overall industry sales.
The decline in revenue was visible across all sectors: there was a 11.6% drop in revenue from bodywork, fittings, and trailers; a 5.4% decrease in parts and accessories for motor vehicles such as alternators, transmissions, or bumpers; and a 4.3% decrease in the production of motor vehicles and motor vehicle engines.
The industry relies heavily on exports for its revenue. Around 190 billion euros worth of vehicles were exported in the first half of the year, accounting for 70% of the total sales, setting a new record for the last 15 years. Germany exported approximately 1.7 million passenger cars worth 68.4 billion euros from January to June. Despite a small decrease (-0.3%), the level of exports remained almost the same from the first half of 2023. Of the electric vehicles exported, nearly one in four (22.7%) had a pure electric drive. Even though the number of exported electric vehicles decreased by 2.5% compared to the previous year's period, it increased by 113.9% compared to the first half of 2022.
As of June, the automotive industry employed around 773,000 individuals, excluding suppliers, which is a decrease of 0.8% compared to the previous year. The most employees were recorded at the end of the first half of 2019, with approximately 834,000 individuals. The German automotive industry accounted for 14% of the total employment in the industry, making it the second-largest sector after mechanical engineering with 952,000 employees.
Recently, Volkswagen's cost-cutting measures have highlighted the challenges faced by car manufacturers. However, Volkswagen isn't the only one suffering. Premium manufacturers like Mercedes-Benz and BMW have also had to lower their sales targets, partly due to the weakness in the crucial sales market, China.
Manufacturers in the automotive sector, such as Volkswagen, Mercedes-Benz, and BMW, are implementing cost-cutting measures due to the challenging sales environment. Despite setting lower sales targets, these manufacturers continue to struggle, with premium brands like Mercedes-Benz and BMW being affected by weakness in the key sales market, China.
