STUTTGART (dpa-AFX) - The balance of power in the global automotive market is shifting increasingly: car imports from China into the European Union have, according to an analysis, surpassed European exports to the People's Republic for the first time. Exports of cars and automotive parts from the EU to China fell by 34 percent to 16 billion euros last year, according to a paper by the auditing and consulting firm EY.
Since 2022, exports have more than halved. At the same time, imports from China in this sector rose by eight percent to 22 billion euros. Consequently, a double-digit billion-euro export surplus has turned into a deficit within just a few years.
This trend is also evident for Germany, a major automotive hub: in 2025, China was only the sixth most important export destination for German manufacturers. Although exports still exceeded imports, the gap is narrowing. Since the record year of 2022, exports to the People's Republic have more than halved - from around 30 billion to 13.6 billion euros. Over the same period, motor vehicle imports from China rose by two-thirds to 7.4 billion euros. "If the respective curves continue, imports and exports could reach parity in 2026," the EY analysis states.
Expert: Competition will intensify further
According to EY expert Constantin Gall, Chinese carmakers are currently facing a difficult environment in Germany. Volkswagen, Mercedes-Benz, BMW, and their brands have so far successfully defended their market shares against them. In other European markets, however, the Chinese have since recorded remarkable successes. "In 2026, we will see a further intensification of competition - the pressure on Germany as an automotive location will therefore continue to rise," Gall announced.
An important point of context: according to EY, automotive parts also include EV batteries, a market dominated by Chinese suppliers. Furthermore, German car manufacturers and suppliers also operate plants in the People's Republic. They produce there for the local market but also export vehicles and parts to Europe. This applies, for example, to models from the BMW subsidiary Mini or the Cupra Tavascan SUV from the Volkswagen Group. Mercedes-Benz also assembles Smart brand vehicles entirely in Xi'an, China, together with its major shareholder Geely - and subsequently exports them.
Tens of thousands of jobs have been cut
The crisis in the industry and increasing competition had already impacted business last year. Accordingly, the turnover of the German automotive industry fell by 1.6 percent to almost 528 billion euros in 2025. Manufacturers and suppliers reported significant slumps in profits in some cases. According to EY, data from the Federal Statistical Office, the Federal Employment Agency, and the EU statistical office Eurostat were evaluated for the study.
Employment also declined significantly: the number of jobs shrank by 6.2 percent, or nearly 50,000, to around 725,000 - the lowest level in 14 years. In the automotive industry, there are a series of job-cutting programs that will continue to run for a longer period. Positions are being cut at Mercedes-Benz, the Volkswagen Group and its associated brands, as well as at suppliers such as Bosch, Aumovio, ZF Friedrichshafen, and Mahle.
Suppliers under particularly heavy pressure
The supplier industry, in particular, is coming under increasing pressure compared to manufacturers. Turnover fell by four percent in 2025, while employment dropped by a good tenth. Since 2019, almost one in four jobs in this sector has been lost - a total of around 73,000 positions. Gall sees an accelerated structural change. The downward trend has intensified recently, he explained.
According to EY, the causes of the strained situation are multifaceted. In addition to growing competitive pressure from China and weakening export markets, the weak economy, geopolitical crises, and high new car prices are weighing on demand. At the same time, the slow increase in EV sales is causing further problems: many companies have made high investments without the expected sales figures materializing. Added to this are the disadvantages of Germany as a business location - such as high costs and bureaucracy./jwe/DP/zb
