The business climate index of the German automotive industry has slightly decreased in April 2025, falling to -30.7 points from -30.5 points in March. According to Ifo-Branchenexpertin Anita Wölfl, the recently implemented US tariffs have hindered positive business developments, particularly in the European market, in their early stages.
Despite this, companies are slightly more optimistic about their current business situation, albeit still at a very low level. The indicator has risen to -36.4 points in April from -39.6 points in March. However, business expectations have decreased from -20.9 points in March to -24.8 points in April.
The order books are slowly filling up again, with significantly more companies being satisfied with their order backlog in April compared to the previous month. Wölfl attributes this to the increased order inflow from the Eurozone since the end of last year, which accounts for a third of the German automotive industry’s exports. The companies also perceive their competitive position on the European market much better than in the two previous quarters.
However, the business outlook is being pulled down by the tariffs on car exports and parts to the US that have been in effect since the beginning of April. Export expectations of companies have significantly decreased after rising in the two previous months. Additionally, companies are once again assessing their competitive position outside the EU worse than in the two previous quarters.
The automotive industry companies continue to reduce their workforce, albeit at a slower pace than in the previous months. The employment expectations of companies have improved to -18.7 points in April, having reached a long-term low of -47.0 points in March.