Although Germany began its third consecutive year of recession, the country’s economic problems can be traced in 2019, when decarbonization efforts have launched seriously, threatening its traditional industrial prowess. Meanwhile, China, the German industry in the country which has once relied for massive profits, has become its greatest competitor.
A toxic relationship
The German automobile giants rich in China, entering the market decades ago when national car sales were barely starting to get up; Their Asian success has helped support higher wages at home.
This trend reversed in 2018 when the Chinese market for new cars contracted for the first time since the 1990s, down 3%. He fell 8% more in 2019 before the world’s world market stops.
Nowadays, the market share of the three major German automakers are missing while Chinese competitors introduce cheaper electric vehicles that often wear better technology.
In 2024, BMW sales fell 13% in China; Mercedes-Benz dropped by 7%; And Volkswagen – which counts China as its largest market – has decreased by 10%.
“It was so good in China for so long that the German car manufacturers, despite the problems they have now, are trying to recreate the magic of recent decades,” said Noah Barkin, principal advisor to the Rhodium Group.
Politices
