The Registrations of natural gas vehicles in Germany attained a value of 13,471 Units in 2020
The indicator recorded a historical growth (CAGR) of 21% between 2017 to 2020, and is expected to grow by...
GlobalData projects the indicator to grow at a CAGR of...
Automotive industry in Germany
A huge drop in volume and value was seen in 2020 amid the COVID-19 pandemic. There has been a severe disruption in the export of Chinese parts and widespread manufacturing plant closures around the world. This meant that the manufacturing of cars was impacted. What’s more, consumer confidence is lowered as jobs are placed at risk and the economy stalls. As such, spending on new cars has been constrained, which reduces demand in the car manufacturing industry. The industry is expected to see recovery in 2021, as the immunization of the population will allow a gradual return to normal from the second half of 2021 with the recovery of consumer spending.
The four leading players in the German car manufacturing industry, Volkswagen, Daimler, BMW and Ford, accounted for most of the production volume in 2020. The leading players in this industry are tapping into the growing demand for hybrid and electric vehicles, while alliances within the industry are a common strategy. The COVID-19 pandemic temporarily halted production in many countries in 2020, as well as disrupting the supply chain, and as such, the leading players have been negatively impacted.
Players require operational and logistics excellence from suppliers, including rapid part identification and availability checks, timely delivery, flexible replenishment and return logistics. These stringent requirements can only be met by a few large manufacturers which favor concentration, and thus supplier power. Moreover, suppliers that are able to meet these requirements can enter into long-term relationships with international players, increasing switching costs.
The production of electric vehicles is relatively easier than fuel-based engines, giving rise to a number of new entrants, although the capital requirements are still vast and incumbents are already diversifying into this segment. Players such as Volvo, General Motors, Aston Martin, and Jaguar Land Rover have all announced plans to switch over to manufacturing only electric or hybrid cars at some point within the coming decade. The introduction of a reduced company car tax rate for electric vehicles from January 2019 has also boosted the sales of BEV models. In fact, Germany has now become the biggest market for electric vehicles in Europe, surpassing Norway, after the record performance of 2019.
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