German autos production under growing threat from China

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Imports of Chinese vehicles and parts to Germany jumped 75% in the first half of the year while trade the other way slumped, showing the mounting pressure on Europe's biggest auto production hub. Several Chinese brands entered the German market this year, the German Economic Institute (IW) said in a report seen ahead of publication by Reuters, bringing the total to eight, though they still account for just 1.5% of vehicles sold in the country. Cars made in China by non-Chinese brands, such as the all-electric iX3 from Germany's BMW's, also contributed to the rise in imports.

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Cars made in China by non-Chinese brands, such as the all-electric iX3 from Germany's BMW's, also contributed to the rise in imports. "The business model that used to support car production in Germany - the intercontinental export of high-quality vehicles - is coming under increasing pressure," wrote study authors Juergen Matthes and Thomas Puls.

Europe is losing significance for the sector, with only Germany and Spain among the top ten auto producers worldwide, which in 2000 included also France, Britain and Italy.

 

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