Germany reports sharp drop in car exports to China

The German automotive industry is facing a marked downturn in the Chinese market. Exports of cars and car parts to China fell by around one third in 2025 compared with the previous year and are down by more than 50 per cent from the 2022 peak.

Where export values approached €30 billion three years ago, they now stand at less than €14 billion. According to the German Economic Institute (IW), this is not a routine cyclical fluctuation, but the result of severe distortions of competition and intensifying systemic rivalry from China.

At the same time, carmakers have lost their position as the largest German exporters to China, having been overtaken by the engineering sector, which is itself weakening. The metalworking industry is reporting a decline in exports, while imports of Chinese goods into Germany are rising.

The issue comes to a head during Chancellor Friedrich Merz’s visit to Beijing. The Federation of German Industries (BDI) expects him to raise sensitive matters such as overcapacity, market fairness and controls on exports of critical raw materials.

If no change of course is made, experts warn that the European Union may resort to countermeasures, including tariffs.

(pir)