Automobile production in Germany did not exceed 3.8 million units in 2022
- The production volume of light vehicles (PC+LUV) in Germany remained at the level of 6 million units per year for a long time (between 2005 and 2008 and between 2011 and 2017). From 2017, this volume has gradually collapsed, going from 6 million units in 2017 to 5 million in 2018, 4 million in 2019 and 3.5 million in 2021. The year 2022 marks a slight increase but not beyond 3.8 million units.
- What explains this drop in automobile production in Germany? First, its top market – Germany – has fallen by one million units since 2019, from 3.5 million passenger vehicles to 2.5 million. Then, carmakers drastically reduced their exports to China to produce directly in this country. Also, relocations (which began later than those of France) to the countries of Eastern Europe and Mexico have played a significant role. The VW T-Roc that took 200,000 Golf customers every year is produced in Portugal, not Germany. The weakening of Opel and Ford also contributed to the decline of the German automobile industry. Finally, the policy of German carmakers to engage in high-end electric vehicles, which are therefore expensive, has harmed German production, which was therefore focused in smaller volume but at much higher prices.
- This policy is part of a broader strategy of European carmakers to produce fewer cars but more expensive (the switch from the VW Passat to the electric VW ID7 is a typical case). Last point, the electric VW ID3 produced in Germany did not reach its objectives which were twice as important as its current sales.