German auto suppliers under pressure: losing market share to China!

German auto suppliers under pressure: losing market share to China!

Over the last ten years, German automotive suppliers have increasingly lost market share internationally. According to a study by the management consultancy Strategy&, the global market share of German suppliers has fallen from 26% in 2014 to 23% in 2024. In contrast, Chinese companies have more than doubled their market share from 5% to 12% over the same period. These figures illustrate how the balance of power in the global automotive sector is shifting, with the competitiveness of the German supplier industry coming under pressure. Süddeutsche.de reports that the losses suffered by German suppliers are primarily due to the declining sales figures of their main European customers.

The challenges for German auto suppliers are significant, as they are not only confronted with the speed of innovation and price advantages of Chinese companies, but also have to operate in a rapidly changing market. German manufacturers are losing market share, particularly in China, one of the largest automobile markets in the world. Chinese car manufacturers are increasingly sourcing parts from domestic suppliers, which further weakens the competitive position of German companies. The study finds that both the sales of the largest car manufacturers are stagnating and the sales of car suppliers have only increased slightly from 1.14 trillion euros to 1.15 trillion euros. It-boltwise.de highlights that this situation benefits Chinese companies.

Technological challenges and future prospects

A particularly critical issue is key technologies such as batteries and software, in which Chinese manufacturers now have a technological lead and clearly stand out in terms of both the speed of innovation and pricing. Strategy&'s report recommends that German companies accelerate their development and production and open up new fields of technology. Henning Rennert, one of the authors, emphasizes the high pressure on the industry, but also sees potential for growth from existing crises, similar to the 1990s when the industry overcame previous challenges.

In summary, the German automotive supply industry is facing significant challenges that affect not only market shares, but also long-term innovation and competitiveness in the global automotive sector. A fundamental rethinking of the innovation strategy could be the key to not losing touch with international competitors.