Despite the crisis and the poor mood in the German car industry, Ifo expert Anita Wölfl sees hope. She would not write off the industry, says the economic researcher, especially in view of the “nose-dive” in sentiment recently reported by Ifo. “This is not the first crisis that the car industry has had to go through.” And it will not be the last either.

In the past, the automotive industry has shown itself to be very resilient in crises and strong in innovation, Wölfl emphasizes. This adaptability was clearly visible, for example, in dealing with the supply chain difficulties of recent years or in the development of patents for electric drive trains.

Wölfl: Manufacturers reacted too late

In principle, Wölfl also sees this resilience among suppliers. “My impression is that most of them have adapted relatively well.” This is especially true for those who have prepared for the arrival of the electric motor.

However, Wölfl also sees the difficulties facing the industry: overall, the German automotive industry reacted very late to electromobility, she complains. In addition, unlike new pure electric suppliers from China, for example, it faces the challenge of producing both combustion engines and electric cars with dual structures.

In view of the strong competition, there are also other issues such as changing customer expectations. In China, the most important electronics market, it is much more important what a car has to offer in terms of information and entertainment – and the Germans are still lagging behind in this regard.

ADAC sees first real step in promoting electric cars

In addition to these structural problems, the automotive industry is also suffering from the general global economic development. This is particularly affecting the export-oriented sector. In the monthly industry climate report recently published by the Ifo, the indicator for export expectations also fell significantly and was at minus 29.6 points, the lowest it has been for a long time.

According to the ADAC, the planned subsidies for company cars with electric drives are the right way out of the misery. The cabinet had previously introduced corresponding tax benefits. “Around two thirds of new car registrations in this country are accounted for by commercial owners, who are currently particularly reluctant to buy or lease purely battery-electric vehicles,” says the ADAC. Tax benefits would benefit the manufacturers, but also consumers, as the vehicles would be available on the used market after just a few years.