Global Market Trends
The market volume and dynamism of the worldwide automotive markets are the major driving forces behind the increasing global presence of the German automotive industry:
Sales on the West European market in the year 2004 totaled 14.5 million passenger cars, of which the German brands made up over 46 per cent. This is therefore the most important region in terms of sales for the German automotive industry. At the same time, 7 million vehicles rolled off German manufacturers' production lines in Western Europe, with 2.2 million of these destined for the German market. Last year Western Europe achieved growth amounting to 2 per cent, thus developing at a regional rate below the average in comparison to the global automotive market (49 million passenger cars sold, + 5 per cent).
The new EU member states have clearly gained importance in the German manufacturers' international market portfolio. The East European market not only accounts for 4 per cent (142,000 units in 2004) of the exports of German passenger cars, but is also an important region in terms of sales, especially of locally produced German brands (sales of German brands came to over 340,000 units in 2004). And in the same year over 100,000 vehicles produced in the assembly plants of German companies in the new member states were delivered to Germany.
Fifteen per cent of the vehicles exported by the German automotive industry (546,000 units) went to the USA, as did 20 per cent of the value of exports. This means that the USA, the world's largest single automobile market (16.9 million vehicles / + 1 per cent in 2004), is the most important sales market after the EU. The German automotive companies have many links with the USA - both with the production of vehicles in the USA (217,000 passenger cars) and with the import into Europe of products manufactured in the USA (41,000 units). In addition, the USA, Canada and Mexico have become important production locations of the automotive industry, since they also supply firms in the USA as well as their traditional German customers.
With growth of 17 per cent in the year 2004 after 77 per cent growth in the year 2003, China is the most important driving force for growth amongst the newly industrializing countries, currently with 2.3 million newly registered passenger cars. Volkswagen was active here from an early stage, and together with the presence of a host of other German supply companies in China, this means that the German automotive industry has been important in setting the pace of this development (present sales volume: over 650,000 units). As new competitors enter the market, the German automotive industry currently sees itself confronted with tough competition and increasing price pressure on the volume market. However, it is simultaneously profiting in the long term from the expanding premium segment in the Chinese vehicle market.
In 2004 the German automotive industry pushed up its sales volume by almost the same percentage (3 per cent) as the growth in the global passenger car market. Its share of the global market in light vehicles stands at 23 per cent. In the face of less market dynamism in 2005 in Europe and the USA and slower growth on the automotive market in China, gaining market shares from competitors will be the key to success. This will lead to even more competitive pressure, which will mean that the industry's procurement, production and supply structures will be permanently put to the test. It can be assumed that the trend towards a global presence, as seen in the automotive industry in recent years, will be reinforced.
