The recently published figures on production and new registrations could really be interpreted as the first tentative signs of a recovery in our automotive and supplier industry. Car production rose by a whopping seven percent to 1.35 million units in 2024 – a new record, albeit still below the pre-crisis figure from 2019, but a record nonetheless. And every third car produced in Germany is electric. This is also reflected in the new registration data: new registrations of electric vehicles rose by 31% in February 2025. E-mobility appears to be gaining ground in the long term, albeit more slowly than expected – despite the abolition of the environmental bonus.
After the recent setbacks, the German automotive industry, which has been spoiled by success, has recognized the signs of the times and is reacting forcefully to the new market conditions. The plan is to invest around 320 billion euros in research and development worldwide by 2029. The focus of investment will be on intensifying the transformation process, expanding new technologies and new products. Initial successes are already visible. VW, for example, has presented a small electric car at a price of 20,000 euros. And the other manufacturers are following suit – even though the lead of the Chinese competitors is more than challenging, especially when it comes to battery technology.
With all due respect, the shock paralysis towards the Far Eastern competition seems to have eased. There is no doubt that a more than respectable automotive industry has emerged in China that is capable of producing products of the highest quality. And at least in its home market, it has gained a position comparable to that of traditional European or North American manufacturers in their traditional markets. It will be difficult, if not impossible, to change this. FIAT is still number one in Italy. Renault and Peugeot have maintained their market position in France for decades. Year after year, Ford and GM build the most popular cars in North America and the superiority of VW, BMW and Mercedes-Benz on the German market is likely to be difficult to break. This means that the Chinese domestic market is not completely lost for our manufacturers in the long term. However, it will have to be accepted that the Chinese market is no longer the emerging market of the past and that the behavior of Chinese buyers is oriented towards these new circumstances. And this is exactly what Chinese manufacturers are also experiencing in their export markets around the world. It is simply not enough to build a technologically high-quality product. In addition to the product, customers expect a comprehensive range of services – from maintenance to the rapid supply of spare parts – close to home, of course. And they need certainty about the value of the product, which is provided by the aftersales and used car market. Last but not least, the purchase decision is also influenced by emotional and cultural criteria, which is expressed in the concept of brand identity. There is still a lot of development work to be done in this area, and it is precisely here that our industry is still well positioned.
Dear readers, this issue of OEM&Supplier is once again published exclusively digitally with the option of receiving additional information through links, interactions and networking with web content and social media.
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Your editors
Elisabeth Klock and Dr. Rudolf Müller
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