Germany's engine: facts and figures for the automotive industry

Worldwide, one in five cars that rolls off the production line is made by a German OEM.

In 2019, German carmakers produced more cars than France, the UK and Italy combined.

Cars produced per country (in million)
The automotive industry generated well over EUR 435.3 billion in revenue in 2019, making it the largest and most important industry sector in Germany.

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

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 from 7,100 to 70,000 by 2020.


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.

Germany's goal is to become a world leader in producing and consuming electric mobility by the year 2020, in keeping with its long-term environmental goal to achieve mobility with zero emissions. 


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.

Germany's high-quality trade and transport infrastructure and its well-established network of suppliers and OEMs makes it a solid bet for businesses in terms of air and land transport, as well as information infrastructure. Germany ranks No. 1 according to the 2018 World Bank Logistics Index.

The best location for FDI

Germany leads in FDI projects in the automotive industry.

FDI projects in the automotive sector 2013-2017 by origin country
FDI projects in the automotive sector 2013-2017 by destination country

Germany has a large network of organisations to support you in your venture in the automotive industry. Get in touch to learn more.