The German automotive industry has been in decline for some years now, but this looked to be about to change in 2021, when the country’s automotive industry association (VDA) predicted a growth of 8% during 2021. However, this forecast was cut to 3% this month, with the association citing problems with sourcing the parts required for building cars, specifically semiconductors.

As well as the reason cited by the VDA, of course, there are more reasons for the automotive industry’s problems in Germany. Declining car sales over the last two years in particular can be attributed to the rising global awareness of climate change, among other factors. Traditional cars rely on petrol and diesel, which has caused friction with climate protesters. In September 2019, an auto show held in Frankfurt was blockaded by a climate group demanding that the automotive industry as a whole be held accountable for their reliance on harmful fossil fuels, and the event was declared a “huge fail” by the former boss of Vauxhall.

It is not only independent groups who support a gradual departure from fossil fuels; the VDA also discussed a possible EU-wide ban on combustion engines, which would begin in 2035. They questioned the logic and efficacy of this, citing the toll that would be taken on jobs and consumer freedom. In a statement, the VDA summed up their view on the subject: “People don’t want bans, they want offers”.

The German automotive industry has therefore been shifting towards the production of electric vehicles, but one of the main obstacles to this is the lack of infrastructure to support it. There are few charging ports in public areas for this type of car, but more are being built to keep up with rising demand for cleaner-energy vehicles. Government subsidies on electric cars are attracting more customers to them, which provides further incentive for the building of infrastructure.

While the German automotive industry is facing problems at the moment, therefore, the increasing demand for electric vehicles, combined with further implementation of the infrastructure necessary to support them, could mean that it will see a resurgence in years to come.

Source: www.europe.autonews.com