Despite a year of supply chain setbacks and electric transformation pressures, Germany's automotive giants like Volkswagen, BMW, and Mercedes-Benz collectively manufactured over 4 million vehicles at home in 2023, proving the enduring muscle of this economic powerhouse.
Key Takeaways
- In 2023, Germany produced a total of 4.11 million vehicles, marking a 6.4% decline from 2022 due to supply chain disruptions.
- Volkswagen Group manufactured 4.8 million vehicles in Germany in 2023, accounting for 41% of national output.
- BMW produced 248,000 vehicles at its Munich plant in 2023, focusing on electric models like the i4.
- In 2023, new car registrations in Germany totaled 2.84 million units, up 7.4% from 2022.
- Battery electric vehicles (BEVs) made up 18.4% of new registrations in Germany in 2023.
- Volkswagen was the top brand with 18.2% market share in Germany 2023, selling 522,000 cars.
- The German automotive industry employed 835,000 people directly in 2023.
- Automotive suppliers provided jobs for 1.25 million workers in Germany 2023.
- VW Group had 120,000 employees in Germany in 2023.
- In 2023, Germany exported €153 billion worth of vehicles and parts.
- Passenger car exports totaled 3.6 million units from Germany in 2023.
- USA was top export market with €28 billion in 2023.
- In 2023, German auto R&D spending totaled €45 billion, 7% of revenue.
- VW invested €18 billion in R&D in 2023, focusing on software-defined vehicles.
- BMW R&D budget was €6.2 billion in 2023 for EVs and autonomy.
German car production declined slightly in 2023 while electric vehicle output and exports increased.
Domestic Sales and Market Share
- In 2023, new car registrations in Germany totaled 2.84 million units, up 7.4% from 2022.
- Battery electric vehicles (BEVs) made up 18.4% of new registrations in Germany in 2023.
- Volkswagen was the top brand with 18.2% market share in Germany 2023, selling 522,000 cars.
- Mercedes-Benz held 7.8% market share with 221,000 registrations in 2023.
- BMW Group sales in Germany reached 307,000 units in 2023, 10.8% share.
- Audi sold 208,000 cars in Germany 2023, 7.3% market share.
- Plug-in hybrids accounted for 13.2% of German new car sales in 2023.
- Diesel vehicles share dropped to 13.1% of registrations in 2023.
- SUVs represented 47% of new passenger car registrations in Germany 2023.
- In December 2023, monthly registrations hit 365,000, up 14%.
- Premium segment sales grew 4.2% to 650,000 units in 2023.
- Tesla Model Y was best-seller with 46,000 units sold in Germany 2023.
- VW Golf remained strong with 41,000 sales despite EV shift.
- Compact cars held 28% market share in 2023 German sales.
- Fleet sales accounted for 62% of total registrations in 2023.
- Private registrations grew 12% to 1.1 million in 2023.
- In Q1 2024, sales rose 10.5% to 825,000 units.
- Chinese brands captured 4.5% market share in Germany 2023.
- Used car market saw 6.8 million transactions in 2023.
- Vans registrations totaled 320,000 in Germany 2023.
- Porsche sales in Germany hit 35,000 units in 2023, up 8%.
- Opel/Vauxhall sold 145,000 in home market 2023.
- Ford Germany registrations 180,000, 6.3% share.
- Hyundai/Kia combined 5.2% share with 148,000 sales.
- Market share of electrified vehicles reached 36.5% in 2023.
- In January 2024, BEV share surged to 21.1%.
Domestic Sales and Market Share Interpretation
While Volkswagen dutifully led the parade as it has for decades, the German market in 2023 was a fascinating study in split personalities, where the practical fleet buyer kept the lights on, the private citizen finally splurged, and everyone—whether opting for a Tesla Model Y, a hulking SUV, or a trusty Golf—seemed to be nervously eyeing the electric future in the rearview mirror as diesel quietly faded into it.
Employment and Labor
- The German automotive industry employed 835,000 people directly in 2023.
- Automotive suppliers provided jobs for 1.25 million workers in Germany 2023.
- VW Group had 120,000 employees in Germany in 2023.
- BMW employed 118,000 staff in Germany end of 2023.
- Mercedes-Benz Group workforce in Germany was 105,000 in 2023.
- Average salary in German car industry was €68,000 gross annually in 2023.
- Women comprised 18% of automotive workforce in Germany 2023.
- Over 50,000 apprentices trained in auto industry in 2023.
- R&D staff in German car sector numbered 190,000 in 2023.
- Unemployment rate among auto workers was 2.1% in 2023.
- Short-time work affected 150,000 auto workers in early 2023.
- Porsche employed 36,000 in Germany with Leipzig as key site.
- Audi had 85,000 German employees focused on Ingolstadt/Neckarsulm.
- Continental AG, supplier, had 195,000 employees worldwide but 50,000 in DE 2023.
- Bosch employed 240,000 in Germany, many in auto division 2023.
- ZF Friedrichshafen had 164,000 employees globally, 60,000 in Germany 2023.
- Automotive sector contributed 5.1% to total German employment in 2023.
- 25% of auto jobs required STEM qualifications in 2023.
- Temporary agency workers in auto industry: 120,000 in 2023.
- Age average of auto workers was 44.5 years in 2023.
- Digital skills training reached 300,000 employees in 2023.
- Strikes led to 1.2 million lost workdays in auto sector 2023.
- Opel/Stellantis Germany staff: 25,000 in 2023.
- Ford Germany employed 15,000 workers mainly Cologne.
- Truck manufacturing employed 80,000 in Germany 2023.
- EV transition created 20,000 new jobs in battery sector 2023.
- Supplier bankruptcies led to 10,000 job losses in 2023.
Employment and Labor Interpretation
With a staggering 2.1 million cogs directly turning its engine—spanning giants like Volkswagen, Bosch, and a vast supplier network—Germany's automotive industry remains a powerhouse of high-wage, STEM-driven employment, yet it navigates a bumpy road of transformation, grappling with a stark gender imbalance, an aging workforce, and the painful potholes of supplier bankruptcies even as it charges toward an electric future.
Exports and International Presence
- In 2023, Germany exported €153 billion worth of vehicles and parts.
- Passenger car exports totaled 3.6 million units from Germany in 2023.
- USA was top export market with €28 billion in 2023.
- China imported 480,000 German cars in 2023, down 18%.
- EU exports accounted for 55% of German vehicle shipments in 2023.
- UK received 250,000 German cars exports in 2023 post-Brexit.
- VW exported 2.1 million vehicles from German plants in 2023.
- Mercedes exports to North America: 450,000 units in 2023.
- BMW shipped 1.2 million cars abroad from Germany 2023.
- Auto parts exports reached €92 billion in 2023.
- Exports to South Korea grew 12% to €4.5 billion in 2023.
- Commercial vehicle exports: 380,000 units in 2023.
- Premium brand exports generated €60 billion in 2023.
- Trade surplus in autos was €130 billion for Germany 2023.
- Mexico imported €10 billion German autos/parts 2023.
- EV exports from Germany: 180,000 units in 2023.
- Australia market took 60,000 German cars in 2023.
- Porsche exported 85% of production, 145,000 cars abroad 2023.
- Audi exports to China: 420,000 vehicles in 2023.
- German cars hold 12% share in US market with 500,000 sales 2023.
- Imports to Germany: 450,000 cars, mainly Japanese/Asian 2023.
- Middle East exports €8 billion for German autos 2023.
- Africa received €3.5 billion German vehicle exports 2023.
- Top 10 export markets absorbed 75% of German car exports 2023.
- VW exports to Brazil: 120,000 units from Germany 2023.
- Supplier exports to US: €25 billion in 2023.
- India imports 80,000 German premium cars yearly avg 2023.
Exports and International Presence Interpretation
Germany's auto industry remains an export juggernaut, banking its enormous €130 billion trade surplus on premium brands and parts shipped worldwide, but must now navigate the tricky shift to electric vehicles while its vital Chinese market sputters.
Production and Output
- In 2023, Germany produced a total of 4.11 million vehicles, marking a 6.4% decline from 2022 due to supply chain disruptions.
- Volkswagen Group manufactured 4.8 million vehicles in Germany in 2023, accounting for 41% of national output.
- BMW produced 248,000 vehicles at its Munich plant in 2023, focusing on electric models like the i4.
- Mercedes-Benz Cars division output reached 2.04 million units in 2023, with Dingolfing plant contributing 284,000.
- In 2022, German car production totaled 4.39 million units, including 3.68 million passenger cars.
- Audi's Ingolstadt plant produced 860,000 vehicles in 2023, emphasizing premium segments.
- Porsche's Leipzig plant assembled 174,000 vehicles in 2023, including the Taycan EV.
- Opel produced 145,000 vehicles at Rüsselsheim in 2023 under Stellantis.
- Ford's Cologne plant output was 340,000 units in 2023, mainly Transit vans.
- In Q1 2024, Germany produced 745,000 passenger cars, up 0.5% year-over-year.
- German commercial vehicle production hit 415,000 units in 2023, led by MAN and Daimler Trucks.
- Battery electric vehicle (BEV) production in Germany reached 223,000 units in 2023, 5.4% of total.
- Plug-in hybrid (PHEV) output was 289,000 vehicles in Germany in 2023.
- Germany accounted for 22% of EU passenger car production in 2023 with 3.9 million units.
- Stuttgart's Mercedes plants produced 600,000 cars in 2023, hub for S-Class.
- In 2021 peak, Germany produced 5.07 million vehicles before chip crisis hit.
- VW's Wolfsburg plant, world's largest, made 790,000 cars in 2023.
- BMW Spartanburg (US affiliate) influences German output with 410,000 SUVs exported back.
- German engine production totaled 5.2 million units in 2023, including hybrids.
- Transmission output in Germany was 7.8 million units in 2023 by ZF and others.
- In 2023, Germany produced 1.2 million premium vehicles from BMW, Mercedes, Audi.
- Compact car production segment led with 1.8 million units in 2023.
- SUV/crossover output reached 1.5 million vehicles in Germany 2023.
- German plants installed 1.1 million electrified powertrains in 2023.
- In H1 2023, production fell 5.2% to 2.1 million vehicles.
- MAN Truck plant in Munich produced 45,000 trucks in 2023.
- Daimler Buses output was 28,000 units from Mannheim in 2023.
- Seat/Cupra models from Martorell affect German VW group output at 250,000.
- Skoda production in Mladá Boleslav contributed to VW German totals indirectly at 800,000.
- Germany produced 420,000 vans/light commercials in 2023.
Production and Output Interpretation
Germany's mighty auto industry spent 2023 learning that you can't simply will a supply chain into existence, as it shed 6.4% of its output while paradoxically crowning Volkswagen as the undisputed king of a slightly smaller hill and desperately trying to electrify its crown jewels.
Research Development and Innovation
- In 2023, German auto R&D spending totaled €45 billion, 7% of revenue.
- VW invested €18 billion in R&D in 2023, focusing on software-defined vehicles.
- BMW R&D budget was €6.2 billion in 2023 for EVs and autonomy.
- Mercedes spent €11.5 billion on R&D in 2023, leading in luxury EVs.
- Germany filed 12,500 auto patents in 2023, top in EU.
- Battery research funding: €2.3 billion government grants 2023.
- Autonomous driving tests: 5,000 km daily on German roads 2023.
- Bosch invested €8 billion in R&D, 50% auto-related 2023.
- ZF R&D spend €6.5 billion targeting electrification 2023.
- Continental R&D €3.2 billion for ADAS and connectivity 2023.
- 1,200 startups in German auto ecosystem funded €4 billion 2023.
- Hydrogen fuel cell prototypes: 500 units tested by auto firms 2023.
- Software engineers in auto R&D doubled to 80,000 since 2020 by 2023.
- Porsche invested €3.5 billion R&D for Mission E platform 2023.
- Audi R&D €5 billion on Premium Platform Electric (PPE) 2023.
- EU Horizon program auto grants: €1.8 billion to German firms 2023.
- Digital twin simulations saved €500 million in development costs 2023.
- 3D printing used for 20% of prototypes in German auto 2023.
- AI in design reduced time-to-market by 30% for OEMs 2023.
- Quantum computing pilots for traffic optimization by BMW 2023.
- Sustainability R&D: €4 billion on circular economy 2023.
- Level 4 autonomy approved for highways in pilot 2023.
- Chip design investments €2 billion by auto suppliers 2023.
- Bio-materials tested in 50 vehicle models prototypes 2023.
- V2X communication standard adopted by 10 OEMs 2023.
- Solid-state battery prototypes: 1,000 km range achieved 2023.
- AR/VR training modules for 100,000 engineers 2023.
- Carbon-neutral production pilots at 5 plants 2023.
- Over-the-air updates rolled out to 2 million vehicles 2023.
- Cybersecurity investments €1.5 billion in auto sector 2023.
Research Development and Innovation Interpretation
Germany is spending an automotive fortune with the precision of a Swiss watchmaker, betting €45 billion on a future where luxury is electric, cars are supercomputers, and their industrial crown remains firmly bolted on.
Sources & References
- Reference 1VDAvda.deVisit source
- Reference 2ANNUALREPORT2023annualreport2023.volkswagenag.comVisit source
- Reference 3BMWGROUPbmwgroup.comVisit source
- Reference 4GROUPgroup.mercedes-benz.comVisit source
- Reference 5DESTATISdestatis.deVisit source
- Reference 6AUDIaudi.comVisit source
- Reference 7NEWSROOMnewsroom.porsche.comVisit source
- Reference 8MEDIAmedia.stellantis.comVisit source
- Reference 9MEDIAmedia.ford.comVisit source
- Reference 10KBAkba.deVisit source
- Reference 11ACEAacea.autoVisit source
- Reference 12STATISTAstatista.comVisit source
- Reference 13VOLKSWAGEN-NEWSROOMvolkswagen-newsroom.comVisit source
- Reference 14BMWUSFACTORYbmwusfactory.comVisit source
- Reference 15ZFzf.comVisit source
- Reference 16MANman.euVisit source
- Reference 17DAIMLERTRUCKdaimlertruck.comVisit source
- Reference 18SEAT-MEDIACENTERseat-mediacenter.comVisit source
- Reference 19SKODA-AUTOskoda-auto.comVisit source
- Reference 20AUTOBILDautobild.deVisit source
- Reference 21ZDKzdk.deVisit source
- Reference 22OPELopel.comVisit source
- Reference 23HYUNDAIhyundai.newsVisit source
- Reference 24BDIbdi.euVisit source
- Reference 25BMWKbmwk.deVisit source
- Reference 26ARBEITSAGENTURarbeitsagentur.deVisit source
- Reference 27ZEITzeit.deVisit source
- Reference 28PORSCHEporsche.comVisit source
- Reference 29CONTINENTALcontinental.comVisit source
- Reference 30BOSCHbosch.comVisit source
- Reference 31IGMETALLigmetall.deVisit source
- Reference 32STELLANTISstellantis.comVisit source
- Reference 33CORPORATEcorporate.ford.comVisit source
- Reference 34HANDELSBLATThandelsblatt.comVisit source
- Reference 35ECec.europa.euVisit source
- Reference 36SMMTsmmt.co.ukVisit source
- Reference 37GTAIgtai.deVisit source
- Reference 38FCAIAfcaia.com.auVisit source
- Reference 39MARKLINESmarklines.comVisit source
- Reference 40SIAMsiam.inVisit source
- Reference 41EPOepo.orgVisit source
- Reference 42AUTO-TECHauto-tech.deVisit source
- Reference 43BITKOMbitkom.orgVisit source
- Reference 44ADDITIVEMANUFACTURINGadditivemanufacturing.mediaVisit source
- Reference 45MCKINSEYmckinsey.deVisit source
- Reference 46BUNDESREGIERUNGbundesregierung.deVisit source
- Reference 475G-PPP5g-ppp.euVisit source
- Reference 48SKELETONTECHskeletontech.comVisit source
- Reference 49DELOITTEdeloitte.comVisit source
- Reference 50BSIbsi.bund.deVisit source