Is Germany's car market starting to lose ground to Chinese brands?

Mar 11, 2024

Demand for German cars on the car market has been steadily declining in recent years. The economic decline started in 2020. This is caused by several factors. Among them are the coronavirus pandemic and the migration crisis.

Auto sales in Germany - what are the results for 2023?

Last year, the German car market showed a moderate recovery after several years of decline. The total number of cars sold rose to 2.83 million, a gain of 7.4%. However, this increase was lower than expected due to the unfavorable economic situation. Last December, the downward trend continued after three months of decline and only ~241,000 vehicles were sold, a 22.6% drop from 2022.

In the sales ranking for 2023, Volkswagen remained the leader with 519089 cars sold (+7.9%). It is followed by Mercedes-Benz (277352 units; +13.7%) and Audi (246880 cars; +15.7%). Among the top 10 brands, the highest sales dynamics were shown by Seat (+28.1%) and Skoda (+17.1%), while Ford (-11.2%) and Fiat (-1.6%) experienced a decline.

The Volkswagen Golf remained the most popular model in Germany in 2023, despite sales falling by almost 4% year-on-year. In second place was the Volkswagen T-Rock, which showed growth of 16.5%.

The role of Chinese brands in the German automotive market

In recent years, Chinese cars have been attracting attention at global auto shows, epitomizing a new turn in the automotive industry. New models released by Chinese companies stand out not only for their stylish design, but also for the high speed with which they appear on the European market. "BID Auto" and other Chinese automakers are actively competing with traditional German brands, confidently capturing market share.

According to research, the share of Chinese cars in Europe, particularly in Germany, is still small, especially compared to the market leaders: Volkswagen, Tesla and Mercedes-Benz. Even in the electric car segment, Chinese brands still have a small market share, despite their rapid development and the release of new models. The main players in the European automotive industry are still holding their positions, but competition with Chinese companies stimulates them to further development and innovation.