Mathilde Carlier
Research Expert covering transportation and logistics
Automotive retail industry in Germany - statistics & facts
Germans buy the most cars in Europe. New passenger car registrations in Germany in 2023 were nearly 941,600 units higher than those in the United Kingdom, and over one million over new registrations in France. Despite this comparatively high sales volume, businesses in the German automotive industry have faced pressures from a lack of orders, leading them to have a negative perception of the automotive business climate between June 2023 and April 2024. Despite these setbacks, the automotive industry generated its highest revenue in the past two decades in 2023, with 37 percent of this revenue coming directly from new car and truck sales. As the direct link between consumers and automakers, automotive retail plays an important part in the financial performance of the overall automotive industry. The position of Germany as the largest car market in Europe further incentivizes automotive companies to invest in the country.
The German automotive retail market is dominated by domestic brands, but lower purchase intentions could impact sales for auto manufacturers. Brand loyalty could be a key factor in the purchasing process, though German consumers also prioritize safety, sustainability for everyday use, and high quality when choosing a car.
Growing car sales despite rising new car prices
The average new car price in Germany was at its highest in 2023, though sales had also risen by 7.3 percent year-over-year. While this volume increase was not enough for German car sales to recover from the drops recorded in 2020 and 2021 amid the COVID-19 pandemic and automotive semiconductor shortage, it still suggests that the rising new vehicle price point has not led to a sales decline. Sport-utility vehicles, which tended to have a higher price point than compact cars, were the best-selling car segment in the country. Over 390,600 more SUVs were sold than compact cars, which were the second segment with the most sales in 2023.Domestic brands dominate all aspects of the market
Perhaps unsurprisingly, German brands topped the car sales rankings in Germany. In 2023, four of the five best-selling car makes were German, with Škoda, one of the Volkswagen Group’s non-German subsidiaries, completing the top five. Volkswagen, the best-selling brand across fuel type, was also the leading brand for new electric cars in the country, recording over 6,900 more sales than Tesla. The German brand also topped the used car ranking that year, making it the most popular marque across all aspects of the German automotive retail market. Volkswagen further ranked second in the global automotive market, holding six percent of the worldwide car sales. Mercedes-Benz, the second most popular brand in Germany, was the only other German brand to reach the top 10 brands in the global market.Consumer loyalty amid high intentions to not purchase a new car
Most consumers in Germany tended to like luxury car brands. In a Statista Consumer Insights survey, around half of German shoppers mentioned liking BMW and Audi, compared to 39 percent mentioning Volkswagen. Despite this, Volkswagen still boasted a high loyalty score, with 75 percent of Volkswagen owners stating they were likely to purchase the brand again in the future, just one percentage point under Mercedes-Benz’s score. The two brands were only surpassed by Tesla, Audi, and BMW in this ranking. As around 56 percent of consumers had no plans to purchase a new car in the next twelve months as per a March 2024 survey, brand loyalty could play an important part in German brands attracting the 19 percent of consumers looking to purchase a new vehicle.The German automotive retail market is dominated by domestic brands, but lower purchase intentions could impact sales for auto manufacturers. Brand loyalty could be a key factor in the purchasing process, though German consumers also prioritize safety, sustainability for everyday use, and high quality when choosing a car.
