The business climate in the German automotive sector, as measured by the Ifo Institute in Munich, improved slightly in January, rising to -19.6 points from -19.8 points in December, the institute reported on Wednesday.
Although firms still rate their current conditions as poor, they are less pessimistic about the months ahead. “Demand from the Eurozone continues to act as a supporting force for the German auto industry” industry expert Anita Wölfl said.
Export outlooks have brightened considerably. Expectations for foreign sales rose to +8.7 points in January, up from -8.0 points in December. Wölfl attributed this to the decisive role of intra‑European trade, noting that “official data on order receipts confirm the importance of intra‑EU commerce”.
Within EU markets the sector’s competitive position has also improved sharply, with the balance moving from 1.5 points in October to 15.4 points in January. Conversely, competitiveness outside Europe has weakened further; the balance fell to -31.3 points, down from -17.4 points in October.
Wölfl warned that “the German automotive industry has lost competitiveness in non‑EU markets since 2024, especially against China, and increasingly against the United States” according to analyses based on official trade data.
