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German car exports to China plunge by a third in 2025, says economic institute
This picture taken on February 11, 2026 shows pedestrians walking along an overpass as traffic snarls in Beijing. (AFP File Photo)
German car exports to China plunged by roughly a third in 2025, extending a steep decline that has wiped out more than half the sector’s shipments since their 2022 peak, according to a study released by the German Economic Institute (IW) on Tuesday.
Exports of cars and parts fell to under 14 billion euros ($16.49 billion) last year, down from nearly 30 billion euros three years earlier, underscoring the rapid erosion of Germany’s foothold in its most important foreign market.
Carmakers — which make up Germany’s largest industrial sector — are facing their toughest test in decades, squeezed by higher U.S. import tariffs, weak demand in Europe, a costly transition to electric vehicles and an intensifying price war in China.
The IW data comes as Chancellor Friedrich Merz travels to China for the first time, a closely watched trip expected to shed light on how Europe’s biggest economy seeks to recalibrate ties with its largest trading partner amid mounting competitive and geopolitical strains.
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