Your company is already operating in Germany and you would now like to export worldwide?

Go to Trade
Automotive Industry and Electric Mobility made in Germany | © Gorodenkoff Productions OU - stock.adobe.com

Automotive Industry in Germany

The German automotive industry is playing a pivotal role in the global transition to electric mobility solutions.

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. Interested in expanding your business to Germany?

Check out  our  automotive industry figures and find out why, more than 130 years after inventing the automobile, Germany, is heading for a new approach to shape transportation solutions for the future. Find out more down below about Germany’s Electric Automotive and Mobility Sector:

Content of this page

Tesla Reshapes Automotive Industry with German Gigafactory

Elon Musk was present in person to hand over the keys to customers who had preordered one of Tesla’s first German-made model Y vehicles, as the US automotive giant inaugurated its first European gigafactory in Brandenburg near Berlin.

Attending the ceremony on March 22, 2022 were German Chancellor Olaf Scholz and Minister for Economic Affairs and Climate Action Robert Habeck. Scholz underscored the importance of the project, which has injected jobs, money and a huge amount of future potential into an area of Germany not previously known for the automotive industry.

“Germany’s east is also leading the way in terms of industry. Electromobility will be the mobility of the future.”

German Chancellor Olaf Scholz

“Danke Deutschland,” tweeted the iconic and iconoclastic Musk.

The gigafactory, which is located near the town of Grünheide, is Europe’s largest electric vehicle production facility and will employ as many as 12,000 people. It has already attracted German and international automotive suppliers to the region and represented at the time the biggest foreign direct investment in eastern Germany since the fall of the Berlin Wall.

Tesla chose its new location for a variety of reasons: access to Europe’s largest economy, Germany’s skilled labor force, excellent regional infrastructure, the stability of the German legal and economic framework, and support from national and regional authorities.

Journalists and industry leaders and observers celebrated the opening as a major milestone and another example of the German automotive industry continuing to expand out from its tradition strongholds in the south, Saxony and Wolfsburg.

„The day is finally at hand – Tesla’s newest gigafactory is now officially open,” said Germany Trade & Invest automotive expert Stefan Di Bitonto. “It’s a fantastic moment for the Berlin-Brandenburg region and for Tesla customers.”

Add to dossier

Video News: Automotive Industry and Electric Mobility in Germany

What's new in Germany’s Electric Automotive and Mobility Sector? Watch the news!

Why Battery Makers are Coming to Germany

Electric vehicles batteries used to be made primarily in Asia, but now suppliers are flocking to Germany to be near Europe’s largest automotive sector. Find out more:

Germany's Drive Toward Electric Vehicles

Germany now has more than one million electric and hybrid vehicles on the road, but it has set its sights far higher. Learn more about Germany’s automotive future:

Germany to Invest Record 86 Billion Euros in Rail Modernization

As part of Germany’s push to meet its climate protection goals, the country is investing billions of euros to make its rail system among the world’s most modern. More information:

The Future of Mobility "Made in Germany"

How we get around is an integral part of how we are – and where we’re headed. And mobility in Germany has entered a fascinating period of disruption, change and innovation. Here’s a run-though:


Publications: Germany's Automotive Industry and Future Mobility

Download our latest publications about the Automotive Industry and Future Mobility in Germany completely free of charge.

The Automotive Industry in Germany The Automotive Industry in Germany | © GTAI

The Automotive Industry in Germany

Germany is Europe’s number one automotive market in production and sales terms and the most innovative in international comparison.

Find out more and download our latest industry overview "The Automotive Industry in Germany" free of charge: 


Download

20210913_MockUp_FS_FutureMobility_1340x754 20210913_MockUp_FS_FutureMobility_1340x754 | © GTAI

Future Mobility in Germany

Germany’s world-leading automotive industry is a driving force in the transformation to the smart and sustainable mobility of the future.

Find out more and download our latest fact sheet "Future Mobility in Germany" free of charge:


Download

Automotive Industry & Market Numbers

The automotive industry is the largest industry in Germany and the European leader. The sector’s proven record of accomplishment and commitment to new mobility technologies make it the world’s auto innovation hub.

  • The automotive industry is the largest industry sector in Germany. In 2021, the auto sector listed turnover of EUR 410.9 billion – around 20 percent of total German industry revenue.
  • Germany is Europe’s number one automotive market, accounting for around 25 percent of all passenger cars manufactured (3.1 million) and approximately 20 percent of all new car registrations (2.6 million).
  • One in every five cars worldwide carries a German brand.
  • Germany is home to 44 automobile assembly and engine production plants with a capacity of over one third of total automobile production in Europe.
  • In 2021, Germany‘s domestic internal automotive industry R&D expenditure rose to EUR 28.25 billion – equivalent to 35 percent of total R&D expenditure in Germany.
  • Fifteen of the world’s top 75 automotive suppliers are German companies.*
  • Almost  77 percent of cars produced in Germany in 2021 were ultimately destined for international markets – a new record.
  • More than 40 percent of patent registrations in Germany originate from the automotive industry.
  • Around 786.100 are employed in the industry as a whole in 2021.

Source: VDA und ACEA 2022
* Source: Crain Communications 2021

Market Trends: Global Automotive Industry

Germany is showing the world the way forward to the autonomous, connected and green mobility models of the future. What's trending within the global automotive industry?

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 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.

go to top

All rights reserved. Any reproduction in whole or part only with express written permission. All efforts are made to ensure integrity of the content, however we are not liable for any mistakes that may occur.

© 2024 Germany Trade & Invest

Promoted by Federal Ministry for Economic Affairs and Climate Action in accordance with a German Parliament resolution.

Feedback

Log in

Please log in on this page with your log-in details.

Forgot your password?