Germany's Auto Production Plunges 29% as Production Shifts East
Germany's automobile production has seen a significant decline, dropping by 29% from 5.7 million units in 2015 to around 4 million in 2024. This shift coincides with a relocation of production sites from Western Europe to cheaper locations in the East, with the Czech Republic emerging as the third-largest producer in Europe.
Germany, once the dominant force in European automobile production, has seen its share fall from 39% in 2015 to 34.6% in 2024. Despite this, it remains the largest production site in Europe. Meanwhile, Turkey and Morocco have expanded their production capacities by 50% each for the European market.
The global landscape has also shifted significantly. In 2000, Europe's share of global passenger car production was 36%, but this has fallen to 18.5% in 2024. China, on the other hand, has produced 30% more passenger cars in 2024 compared to 2015, solidifying its lead over the EU and Germany. Germany, however, ranks second globally in electric vehicle production.
In 2024, EU and UK manufacturers produced around 12.5 million cars, nearly four million fewer than in 2015. About 30% of passenger cars produced in Germany are exported to non-European markets. While Germany remains a key player, the automobile industry's centre of gravity is shifting, with cheaper production locations in the East and increased competition from markets like China.
