The automotive industry is the most important sector in the country for Germans

The overwhelming majority of the population is aware of the significant economic importance of the automotive industry for the German economy: 87% consider the automotive industry to be one of the most important sectors for the German economy. This means that, from the public's perspective, the automotive industry remains the most important sector in Germany. Skilled trades (71%), mechanical engineering (70%), the metal industry (66%), and the construction industry (64%) follow at a distance. These are the initial findings of a recent survey conducted by the Allensbach Institute for Public Opinion Research on behalf of the German Association of the Automotive Industry (VDA).*

Interestingly, regardless of age, gender, socioeconomic status, occupation, or place of residence (urban/rural), the automotive industry is viewed by far as the most important industry in Germany across all groups. In some cases, over 90% of respondents agree, and even the lowest value (79% in eastern Germany) is higher than that of all other industries.  

Concern about Germany as an industrial location

The survey also shows that, given the general conditions in Germany as a business location, there are widespread doubts about its international competitiveness, and respondents also see consequences for employment trends. With regard to medium-sized industrial companies, just over half (51%) fear that many jobs will be lost in Germany's medium-sized industry in the coming years. Only 18% believe that medium-sized industrial companies in Germany have a good future. The assessment is similar when looking at their own region: With regard to their own region, only one in five (20%) is convinced that automotive suppliers, mechanical engineering companies, or electrical engineering companies have a good future, and 45% fear that many jobs in medium-sized industrial companies in their own region will be lost in the future. Uncertainty is great: around a third of respondents cannot assess the future prospects of industrial companies in their region.

"The companies in the German automotive industry - especially the many medium-sized automotive suppliers - are deeply rooted in Germany's regions. The German automotive industry creates jobs and prosperity and establishes a sense of identity for entire regions and families, often across generations. But people are concerned about the future of the companies and thus also about the economic prospects in their region. We as the German automotive industry want to preserve jobs and prosperity and want to continue to manufacture our cars and products here in the future, but for this to happen, something must be done concerning the location," VDA President Hildegard Müller said.

With a view to the industry's high investments - around €320bn in research and development and €220bn in the conversion of plants in the next four years alone - Müller makes it clear: "Ultimately, the international competitiveness of the location will determine where these investments are made - and thus also where the jobs of the future will be created. In view of the intensifying international competition between locations and geopolitical uncertainties, it is all the more important to develop a clear agenda here now: Locational attractiveness and competitiveness must be top priorities in Berlin and Brussels. If politicians do not finally take decisive action in the political framework, the danger will continue to grow that the automotive medium-sized enterprises will increasingly have to turn away from Germany - with correspondingly negative consequences for growth, prosperity, and jobs. Therefore, Berlin and Brussels must now focus on everything that creates growth. The statement from the federal government's coalition agreement, for example, that they want to remain an 'industrial nation and a country of medium-sized businesses' must now be put into practice," Müller said. 

Three quarters of the population consider reducing red tape to be important

Around three-quarters of respondents consider it particularly important for strengthening Germany as a business location that regulations and rules for companies be reduced (reducing bureaucracy) and that approval procedures be accelerated. 71% support a reliable framework for the economy, and a good two-thirds (67%) support reducing energy costs for companies.

The survey also shows that the public's agenda is by no means static; rather, it has, in some cases, changed significantly due to the many crises of recent years and the associated national and international challenges. For example, the proportion of those calling for relief for companies in energy costs has risen from 58% to 67% since 2023. The proportion of those in favor of a tax cut for companies rose from 43% to 53% over the same period, and the proportion of those in favor of a reduction in non-wage labor costs rose from 41% to 50%. 37% currently consider it important that the requirements for companies in the areas of climate and environmental protection be reduced in order to strengthen Germany as a business location. Two years ago, only 31% felt this way.

*The survey is based on a total of 1,031 interviews with a representative cross-section of the population aged 16 and over. It was conducted in March 2025.