German car exports to China plummeted by a third in 2025 as industry struggles with global competition

German car exports to China fell by a third in 2025, reaching a new low since 2022. The industry faces immense pressure as Chancellor Merz visits Beijing today.

A study released on February 24, 2026, by the German DEDE Economic Institute (IW) found that car exports from Germany to China CNCN fell by roughly one-third in 2025. This sharp decline extends a multi-year contraction that has reduced shipments from the automotive sector (cars and parts exports) by more than half since their peak in 2022.
Cars drive along the road during sunset in Beijing, China, January 5, 2026. REUTERS/Maxim Shemetov
Cars drive along the road during sunset in Beijing, China, January 5, 2026. REUTERS/Maxim Shemetov
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