Key highlights
- German auto industry is facing a tough time
- Over 51,500 jobs have been cut in the past year
- Total workforce is down by 112,000 people in 5 years
The German car industry is having a tough time as the industry continues to suffer from EV innovation and the low GDP of the country. Read what’s exactly happening in the German car industry below.
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Is the German auto industry nearing recession?
As per a latest report published online, the auto industry in Germany has witnessed a decline of up to 7% in workforce, along with a massive profit decline, and low demand in the past year alone.
The latest data has been shared by the Statistics office of Germany, called Destatis, which shows that over 51,500 people have lost their jobs in the auto industry between June 2024 and June 2025.
In addition to this, the industrial segment in Germany has witnessed over 114,000 job cuts as compared to 2019. The pandemic is also being considered as one of the major reasons behind this tremendous industry shift. In fact, the auto industry itself has seen over 112,000 job cuts from the pre-pandemic era.
Moreover, the GDP of Germany has also been continuously down since 2023. In fact, the country saw a 0.3% increase in the first quarter this year, but the next quarter nullified it.
Some online reports are claiming that the rise of the Chinese EVs is one of the primary reasons behind this downfall. The German carmakers have not been able to establish themselves in the EV market even now. They continue to struggle with the high input costs and low efficiency, something that the Chinese brands have already conquered in the global market.
Lastly, the newly imposed high tariff rates by Trump’s government have exponentially slowed down the German car industry’s growth.
Our say
The global economic slowdown is hitting the individual car markets. The German auto industry is the latest example that the global shift towards EVs is happening, and China is the one leading this bandwagon.
