German Car Exports to China Collapse

German car exports to China have plummeted by roughly one-third in 2025, a steepening decline that has eroded over half of the sector's shipments since their 2022 peak. Total exports and parts fell to under 14 billion euros last year, a stark contrast to nearly 30 billion euros three years prior.

This dramatic reduction highlights Germany's weakening position in its most crucial foreign market. The nation's largest industrial sector is now navigating its most severe challenges in decades, burdened by factors such as elevated U.S. import tariffs, subdued demand across Europe, and the substantial costs associated with the electric vehicle transition. Intensifying price wars within China further exacerbate these difficulties.

These findings emerge as Chancellor Friedrich Merz embarks on his inaugural trip to China. This highly anticipated visit is expected to offer insights into how Europe's leading economy intends to adjust its relationship with its primary trading partner amidst growing competitive pressures and geopolitical complexities.