EY: German carmakers weaker, China is the biggest problem

Reverse Gear German Car Manufacturers Are Losing Ground

2026-06-08 Source: dpa | Translated by AI 1 min Reading Time

In an international comparison, the start of the year looked worse than usual for German car manufacturers, as analyzed by the auditing and consulting firm EY ...

EY took a closer look at car sales in the first quarter of 2026, analyzing the 19 largest car manufacturers in the world. Accordingly, revenues declined, especially for the German players, while the USA emerged as one of the winners ...(Image: G. Zwirner) — EY took a closer look at car sales in the first quarter of 2026, analyzing the 19 largest car manufacturers in the world. Accordingly, revenues declined, especially for the German players, while the USA emerged as one of the winners ...
(Image: G. Zwirner)

EY has examined what are said to be the world's 19 largest automobile manufacturers. The results showed that the revenues of Volkswagen, BMW, and Mercedes-Benz from January to March were comparatively low compared to the same period in 2025. Accordingly, the result fell by 4.3 percent. Considering all analyzed manufacturers, there was a combined increase of 1.7 percent in global car sales. In Europe, Stellantis and Renault achieved a revenue increase of 6.7 percent. US manufacturers enjoyed a five percent gain, while Japanese automakers saw a 4.3 percent rise. However, Chinese carmakers experienced a decline of 1.4 percent. Looking at operating profit (Ebit), the gap widened significantly. However, one must consider special effects, as noted.

China Remains the Biggest Problematic Market for German Corporations

Overall, the profit of car manufacturers declined by 32.4 percent (to 17.2 billion euros). However, the Japanese manufacturer Honda made write-downs on electric vehicles amounting to billions, as noted by EY. The operating profit of German manufacturers fell by 23.3 percent. Chinese manufacturers even recorded an EBIT loss of 43.4 percent. In contrast, U.S. manufacturers Ford, General Motors, and Tesla achieved a significant increase of 82.9 percent in the first quarter of 2026. This is attributed to the current protection of the U.S. market against foreign products, with partially revoked import duties reportedly leading to substantial refunds to the manufacturers. German carmakers complained about the deep structural transformation of the industry, overcapacities, costly investments in software, and the sluggish ramp-up of e-mobility. Additionally, headwinds from China and the U.S. are making life more difficult, with sales in China alone dropping by 16 percent. The Chinese market is currently the biggest problem for German players, as customers prefer domestic brands for electric vehicles.

Auto China in Beijing showed which trends will shape the automotive industry in the coming years. (Picture:Wehner - VCG)

Subscribe to the newsletter now

Don't Miss out on Our Best Content

Business E-mail

Please enter a valid mailadress.

By clicking on „Subscribe to Newsletter“ I agree to the processing and use of my data according to the consent form (please expand for details) and accept the Terms of Use. For more information, please see our Privacy Policy. The consent declaration relates, among other things, to the sending of editorial newsletters by email and to data matching for marketing purposes with selected advertising partners (e.g., LinkedIn, Google, Meta)

Date: 08.12.2025

Naturally, we always handle your personal data responsibly. Any personal data we receive from you is processed in accordance with applicable data protection legislation. For detailed information please see our privacy policy.

Consent to the use of data for promotional purposes

I hereby consent to Vogel Communications Group GmbH & Co. KG, Max-Planck-Str. 7-9, 97082 Würzburg including any affiliated companies according to §§ 15 et seq. AktG (hereafter: Vogel Communications Group) using my e-mail address to send editorial newsletters. A list of all affiliated companies can be found here

Newsletter content may include all products and services of any companies mentioned above, including for example specialist journals and books, events and fairs as well as event-related products and services, print and digital media offers and services such as additional (editorial) newsletters, raffles, lead campaigns, market research both online and offline, specialist webportals and e-learning offers. In case my personal telephone number has also been collected, it may be used for offers of aforementioned products, for services of the companies mentioned above, and market research purposes.

Additionally, my consent also includes the processing of my email address and telephone number for data matching for marketing purposes with select advertising partners such as LinkedIn, Google, and Meta. For this, Vogel Communications Group may transmit said data in hashed form to the advertising partners who then use said data to determine whether I am also a member of the mentioned advertising partner portals. Vogel Communications Group uses this feature for the purposes of re-targeting (up-selling, cross-selling, and customer loyalty), generating so-called look-alike audiences for acquisition of new customers, and as basis for exclusion for on-going advertising campaigns. Further information can be found in section “data matching for marketing purposes”.

In case I access protected data on Internet portals of Vogel Communications Group including any affiliated companies according to §§ 15 et seq. AktG, I need to provide further data in order to register for the access to such content. In return for this free access to editorial content, my data may be used in accordance with this consent for the purposes stated here. This does not apply to data matching for marketing purposes.

Right of revocation

I understand that I can revoke my consent at will. My revocation does not change the lawfulness of data processing that was conducted based on my consent leading up to my revocation. One option to declare my revocation is to use the contact form found at https://contact.vogel.de. In case I no longer wish to receive certain newsletters, I have subscribed to, I can also click on the unsubscribe link included at the end of a newsletter. Further information regarding my right of revocation and the implementation of it as well as the consequences of my revocation can be found in the data protection declaration, section editorial newsletter.