The business climate in Germany’s automotive sector, measured by the Munich Ifo Institute, ticked up slightly in January, rising to ‑19.6 points from ‑19.8 points in December. While executives view the current situation more negatively, they are less pessimistic about the coming months. “Demand from the Euro‑area continues to be a supporting force for the German car industry” said Ifo industry expert Anita Wölfl.
Export expectations are seen as a bright spot. They climbed to +8.7 points in January from ‑8.0 points in December. According to official order‑entry statistics, intra‑European trade appears to be the key driver. In EU markets, firms rate their competitive position far better, with the balance rising from 1.5 points in October to 15.4 points in January. Conversely, on markets outside Europe the assessment has worsened; the balance fell to ‑31.3 points from ‑17.4 points in October.
Wölfl added that the German auto industry’s competitiveness on non‑EU markets has slipped since 2024, most noticeably against China and increasingly against the United States.