Germany’s auto industry is losing ground, warns expert Ferdinand Dudenhöffer. He blames political missteps, while China’s electric vehicle sector continues to grow.
Germany’s auto industry under pressure
Automotive industry expert Ferdinand Dudenhöffer has raised concerns about the future of Germany’s auto sector, stating it is gradually losing its competitive edge. According to Dudenhöffer, the situation is worsening due to “a toxic combination of policies from Berlin and Brussels.” These political decisions are harming Germany’s automotive position in the long term, he argues, while China is benefiting by expanding its cost advantage in electric vehicle (EV) production.
China’s electric vehicle dominance
In the first half of the year, 25.7% of all new cars sold in China were battery electric vehicles (BEVs), compared to just 7.7% in the U.S. and 12.5% in the European Union. Dudenhöffer points out that China’s lead in cost efficiency is driving Europe further behind. Due to large-scale production capacities and significant battery manufacturing, Chinese EVs are more affordable to produce than those made in Germany.
Germany’s struggles and Europe’s uncertain future
Dudenhöffer also criticizes Germany for hindering the adoption of electric cars, which, in his view, is setting back the entire European auto industry. While countries like France, Italy, and Spain have seen an increase in the share of EVs in the first half of the year, Germany experienced a decline following the end of purchase incentives in late 2023.
Further complicating the situation are renewed debates on synthetic fuels, the 2035 ban on new combustion engine vehicles, and tariffs on subsidized Chinese EVs. If this trend continues, Dudenhöffer warns, Europe will no longer be a competitive location for the automotive industry in the future.
