The mood within the automotive industry appears to be worsening. According to data released by the Ifo Institute on Friday, the Ifo Business Climate Index for the automotive sector fell to -21.4 points in June, down from -20.7 points recorded in May. Companies reported that they rate their current business situation significantly worse than in the previous month, although they are simultaneously looking ahead to the coming months with less pessimism.
Ifo industry expert Anita Wölfl noted that the volatile trend seen in the automotive industry sentiment throughout 2025 continues this year. However, demand from both domestic and European markets is providing a crucial support structure for the industry.
In Germany, electromobility continues to drive growth. Wölfl explained that between January and May 2026, nearly 284,000 pure battery electric vehicles (BEVs) were newly registered in the country. This figure marks a 40% increase compared to the same period last year. As a result, the average share of BEVs in all new registrations for 2026 thus far stands near 24%, significantly higher than the 17% average recorded in the first five months of 2025.
