Sentiment in the German Automotive Industry Clouds Over Somewhat

The business climate in Germany’s automotive industry deteriorated slightly in June compared to the previous month. The indicator fell to -9.3 points from -9.1* in May. “Like the German economy in general, the German automotive industry doesn’t seem to be able to really pick up momentum,” says Anita Wölfl, a specialist at the ifo Center for Industrial Organization and New Technologies.

Companies were more satisfied with their current business than in the previous month, with the indicator for the current situation rising from 4.3* to 3.3 points in June. However, the expectations of manufacturers and suppliers for the coming months have clouded over further. The indicator plunged to -21.0 points from -13.8* points in May.

“Digitalization, autonomous driving, electromobility – the transformation of the German automotive industry is a huge task for manufacturers and in particular for suppliers,” says Wölfl. “In addition to new competitors and greater software intensity, customer requirements and product lifecycles are changing. Added to this is the current uncertainty caused by the dispute between the EU and China over the issue of punitive tariffs. That is reflected in the data from the ifo Business Survey.”

*Seasonally adjusted