Market Share Slipping Into the Rearview Mirror
According to a recent report by consulting firm Strategy& (PwC), the worldwide market share of German automotive suppliers slumped to 23 percent in 2024—down three percentage points compared to a decade ago. For context, Chinese companies, which were virtually absent from the industry just twenty years ago, saw their share rise from a modest 5 percent to 12 percent over the same period. Now, that’s what you call a fast lane takeover.
The Unsung Heroes—And Why They Matter
Suppliers are the quiet superstars behind the auto industry: they don’t just deliver components, they also drive the innovations that make our cars safer, smarter, and more efficient. It’s precisely in this area, experts warn, that Germany is starting to lose its edge.
Speed, Technology—and Tough Competition
The study highlights a painful difference: Chinese companies are not only releasing new technologies faster, but they’re bringing them to market more cheaply as well. In crucial areas such as batteries and software—the very building blocks for electric and self-driving vehicles—China has taken a commanding lead. That’s not just closing the gap; it’s burning rubber right past it.
Can Germany Rally—Again?
But it’s not all doom and gloom in the land of the Autobahn. The German auto industry stood on the verge of crisis in the 1990s too, only to reinvent itself and roar back onto the world stage. According to Henning Rennert, one of the authors of the report, the key this time is breaking old habits and daring to innovate. As he puts it:
“The pressure is intense. But the industry has proven in the past that it can not only survive crises, but actually emerge stronger from them.”
The consultants’ advice pulls no punches: stop endlessly tweaking existing products, and dare to venture into new arenas—be it cutting-edge battery technology, advanced software, or even entirely new concepts of mobility.
The burning question remains: can German suppliers shift gears quickly enough? After all, the race for the future of the automobile is no longer decided only in Stuttgart or Wolfsburg, but just as much in the high-tech hubs of Shenzhen and Shanghai.
John is a curious mind who loves to write about diverse topics. Passionate about sharing his thoughts and perspectives, he enjoys sparking conversations and encouraging discovery. For him, every subject is an invitation to discuss and learn.
