The German automotive industry is in a period of transition. The switch to electric vehicles – Germany wants to have at least 15 million hybrid or fully electric vehicles on the road by 2030 – is essential to tackling carbon emissions and is supported by generous subsidies and legislation. At the same time, major automotive manufacturers are exploring options such as efficient combustion engines and synthetic fuels, as well as greater use of lightweight materials. All while testing new automated driving and smart driver assistance systems. The future of mobility is fast gaining speed. Be part of the journey.
New Mobility
Germany's engine: facts and figures for the automotive industry
In 2019, German carmakers produced more cars than France, Spain and Italy combined.
| 3.1 | in Germany | million cars produced |
| 1.7 | in Spain | million cars produced |
| 0.9 | in France | million cars produced |
| 0.45 | in Italy | million cars produced |
Join the electric future
The e-vehicle market in Germany enjoys enthusiastic government support at the levels of research funding, infrastructure, and subsidies for buyers. Add the innovation by German OEMs and Germany becomes a healthy breeding ground for e-mobility technology and market for e-vehicles.The number of AC charging stations is set to increase to 1 million electric vehicle charging stations by 2030.
Policy in Germany
Policy in Germany favours innovation in electric mobility, creating ideal opportunities for investment.Company car taxation
Improvements to the Annual Tax Act of 2013 will balance out the cost difference between traditionally more expensive electric vehicles and conventionally powered vehicles regarding company cars, removing the income tax disadvantage of going electric.Income tax exemption
Employees who charge vehicle at a workplace at no cost are income tax exempted for the benefit.Vehicle tax exemption
A PEV motor vehicle tax exemption of 10 years for those registered by 2015; 5 years for those registered between 2016 and 2020.To meet the target of 1 million electric vehicle charging stations by 2030, the German government has issued schemes that offer subsidies and tax benefits at both the national and regional level.
Batteries as key technology
As battery costs fall, electric vehicles are becoming affordable to an ever broader segment of the population: e-vehicle uptake on German roads is set to almost double from 1.3 million in late 2021 to more than 2 million by the end of 2023, with a target of 15 million hybrid or fully electric vehicles by 2030.
Boosting energy efficiency
Zero-emission mobility by 2035 is enshrined in EU law. One core aspect is boosting energy efficiency. Key contributions to greater energy efficiency in the area of automotive electronics include motor and battery control units to regulate fuel and electricity supply, cylinder activity, and exhaust control.
An automated future
Autonomous technologies are transforming the entire mobility experience, from safety, fuel efficiency, and in-car entertainment, to increased driver awareness and lower utilisation costs. Germany is at the forefront of these exciting changes: in a recent study, three German OEMs were in the top ten most innovative OEMs worldwide according to connected car applications.
A business-friendly environment
Germany is the ideal location for R&D in the automotive sector. Here you will find the best talent and excellent infrastructure. Thanks to its innovation and research efforts, Germany is becoming an even more attractive design and R&D location.
Hui Zhang, managing director, NIO Germany GmbH
Germany leads in automotive innovation
A priority industry
Germany's automotive industry accounts for one third of the country's research and development expenditure.R&D leaders
Germany's automotive sector leads all other nations in R&D facilities per capita with 114,000 R&D professionals.Supporting innovation
Nine of the top ten patent filing companies in Germany mostly work with the auto industry.21 billion
Follow the money: German carmakers invested EUR 21 billion in innovation in 2016.A strong workforce
The auto industry is the most popular career path for engineering students in Germany. Add to that Germany's dual educational system - classroom and on-the-job training – and you have a skilled and prepared workforce at the ready.
The best location for FDI
Germany has a large network of organisations to support you in your venture in the automotive industry. Get in touch to learn more.