Automotive Industry

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Automotive Industry

Germany – The World’s Automotive Hub of Innovation

Germany is recognized the world over for its outstanding automotive industry and excellence in engineering. From Asia to the Americas, German cars embody highly cherished values of innovation, reliability, safety, and design. Germany is by some distance Europe’s leading production and sales market. The country’s world-class R&D infrastructure, complete industry value chain integration, and highly qualified workforce create an internationally peerless automotive environment. It enables companies to develop cutting- edge technologies, which perfectly address tomorrow’s mobility needs.

Take a look at our impressive numbers and find out why, more than 125 years after inventing the automobile, Germany remains the world’s automotive innovation hub.

Market Trends

The German automotive industry is a substantial and integral part of the global automotive industry. Suppliers and OEMs in Germany are on top of the technological market transformation. Automotive engineers are hard at work improving internal combustion engine energy efficiency, developing alternative drive technologies (including electric, hybrid, and fuel cell cars), and adapting lightweight materials and electronics.

Tighter carbon emission reduction targets and the government’s electric mobility initiative (“National Electromobility Development Plan”) are major innovation drivers for future growth. As a result, demand for connected cars equipped with driver-assistance systems and information components will increase significantly - especially in the premium segment.

Smart technologies will revolutionize the driving experience further. Germany’s industry strength in electronic technologies and software solutions allied to its innovative business networks bolster technological development in one of Germany’s major fields of expertise.

Oliver Seiler | © GTAI "7 out of 10 premium cars produced in Europe are manufactured in Germany – A number which impressively illustrates the country’s innovation power – particularly important for the premium segment."

Oliver Seiler, Director Mechanical & Electronic Technologies, Germany Trade & Invest

As well as technological transformation, the automotive industry is undergoing a continuous value shift from OEMs to suppliers. According to a study conducted by Oliver Wyman and the German Automotive Industry Association (VDA), OEM share of global R&D value creation will decline from 60% today to 47% in 2025 (Source: FAST 2025). Strategic alliances between OEMs and suppliers - as well as within the supplying industry - will grow in importance and offer significant growth potential. Be part of Germany’s automotive success story and locate your business in the world’s largest automotive innovation hub.

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