The Registrations of petrol vehicles in Germany attained a value of 1,361,723 Units in 2020
The indicator recorded a historical decline (CAGR) of 12% between 2017 to 2020, and is expected to grow by...
GlobalData projects the indicator to decline at a CAGR of...
Automotive industry in Germany
The German car manufacturing industry, which is the largest in Europe, declined in both value and volume terms over the historic period. The industry suffered a particularly steep decline in 2020 amid the COVID-19 pandemic. The industry looks set to recover in the forecast period.
The German car manufacturing industry witnessed a contraction in its value during the historical period. The COVID-19 pandemic led to car production being suspended or slowed in many countries in 2020, which raised a huge barrier to entry. The steep decline in car manufacturing output, as a result, meant that 2020 was a difficult year for the industry, which will have proved further off-putting to potential new entrants.
Customers in this industry tend not to be loyal. Even though many customers buy cars from manufacturers they know and trust or have been recommended, the industry is largely feature-driven. Buyers are part of a price-driven industry, which raises buyer power. Companies in this industry usually partner with multi-national corporations (industry players) that have large financial backing.
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.
The car manufacturing industry serves to reduce the threat of new entrants as manufacturers tend to work with a small range of suppliers and these are usually tied together with contractual agreements that are costly to break. The same can be said for distribution channels. Manufacturers will attempt to hold their share of the industry, preventing access to distributors and further reducing the potential threat. 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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