Germany’s 2024 Car Production: A Snapshot of Stability with Signs of Decline
Germany's car production in 2024 stood at 4.1 million units, mirroring the performance of the previous year. Despite maintaining these production levels, the numbers still reveal a considerable decline of 12% compared to the pre-crisis year of 2019. The country's automotive industry, which is known for its global influence, has faced a series of challenges over recent years, including the impacts of the COVID-19 pandemic, semiconductor shortages, and fluctuating consumer demand.
In December 2024, production fell by 10% year-on-year, with just 232.9 thousand vehicles manufactured, signaling a downward trend to close the year. Exports followed a similar pattern, declining by 9% in December, amounting to 196.3 thousand units. However, total exports for 2024 saw a modest rise of 2% compared to the previous year, totaling nearly 3.2 million vehicles delivered worldwide.
The domestic market, on the other hand, showed more promising results. German manufacturers recorded a 12% increase in domestic orders for the year, with an impressive 35% rise in December alone. Despite the positive domestic growth, foreign orders presented a less optimistic outlook. Orders from abroad decreased by 6% year-on-year in December, maintaining the level of 2023 throughout the year.
Electric Vehicle Production Soars
One of the most striking developments in 2024 was Germany's production of electric vehicles, which reached unprecedented levels. In November, the country achieved a new milestone, producing 155.7 thousand passenger EVs, a 29% increase from the previous year. Of these, 120.5 thousand were fully battery electric vehicles, while 35.2 thousand were plug-in hybrids. This surge in electric vehicle production indicates the growing shift toward sustainable automotive technologies in Germany, aligning with the European Union’s green transition goals.
By the end of November 2024, nearly 1.3 million electric vehicles had been produced in Germany, surpassing the total number for the entire year of 2023. This marks a significant achievement for the German automotive industry, which is investing heavily in electric vehicle infrastructure and innovation. The success of electric vehicle production has provided a silver lining in an otherwise challenging year for the industry.
Export Performance and Future Outlook
Despite the progress in electric vehicle manufacturing, Germany’s overall car exports struggled in the last months of 2024. The country’s automotive exports in December experienced a 9% decline compared to the same month in 2023, further reflecting the pressures faced by the sector. The total export figure for 2024, while slightly improved from the previous year, still reflects the complex global dynamics impacting the automotive market.
According to the European Steel Association, the EU’s automotive sector is expected to face a 6.5% decrease in production year-on-year in the fourth quarter of 2024. This projection is indicative of the broader challenges facing the EU’s automotive industry, including supply chain disruptions and shifting demand patterns. However, Germany’s dominance in both traditional and electric vehicle manufacturing offers a critical edge, positioning the country as a leader in the automotive sector despite the challenges.
Key Industry Trends: Domestic Growth, EV Surge, and Export Decline
1. Stable Domestic Orders: The increase in domestic orders by 12% for 2024 highlights a steady demand within Germany, with a more pronounced growth of 35% in December.
2. Electric Vehicle Dominance: November’s record-breaking electric vehicle production figures are indicative of Germany’s commitment to green technology and its position at the forefront of the EV revolution.
3. Export Struggles: Although Germany’s total car exports increased by 2% in 2024, the last quarter saw a significant decline in December, reflecting global economic uncertainty.
4. Future Prospects: The decline in overall car production and exports is part of a larger global trend, with the EU automotive industry projected to face production challenges in the near future.
The performance of the German automotive industry in 2024 highlights both resilience and significant challenges. While the nation has made strides in electric vehicle production, the overall outlook for the sector remains mixed, with pressures on exports and global demand impacting the market. Germany’s focus on innovation in EVs, however, positions it well to navigate the evolving automotive landscape in the coming years.
