To alleviate the current difficulties in the country's automotive industry, German car companies hope to deepen cooperation with China

Release time:Apr 16, 2024 17:16 PM

The 2023 Munich International Auto Show will be held from September 5th to 10th local time. As one of the world's largest auto shows, the Munich Auto Show has always been regarded as a stage to showcase the strength of Germany's automotive industry. However, for the current Munich Auto Show, observers and media generally believe that the performance of German car companies at this exhibition is lackluster, making it the "least German" auto show, which fully highlights the current difficulties of the German automotive industry.

Reporter Yu Peng from the front desk: Since the start of this Munich Auto Show, German media has been merciless in their criticism of German car companies. "Shrinking booths" is used to describe the declining influence of German car companies, "slow ships" is used to describe the slow transformation speed of German car companies, and "enormous pressure" is a description of the current situation of the German automotive industry.

It is reported that this year's Munich Auto Show attracted nearly 670 exhibitors, of which 41% were from Asia. At this year's exhibition, German car companies such as Volkswagen, Mercedes Benz, and BMW did not launch too many new models, especially in the highly anticipated electric vehicle field, where German car companies' products have a dim star.

According to data from the German Association of Automobile Manufacturers, Germany's automobile production hit a new low in 30 years, with only about 2.2 million vehicles being produced in the first half of 2023. Among them, automobile production in June decreased by 3.5% month on month, affecting an overall decrease of 1.5% in industrial production.

To alleviate the current difficulties in the country's automotive industry, German car companies hope to deepen cooperation with China

At the same time, new orders from the German automotive industry are significantly decreasing, with an overall 27% decrease in German automotive orders since the beginning of 2023. Due to the continuous rise in raw material and energy prices, the profit margin of the automotive industry is constantly being eroded.

Muller, President of the German Association of Automobile Manufacturers: There have been many challenges in the past few years. We must deal with the COVID-19 epidemic. In Europe, the Russia-Ukraine conflict has also caused difficulties in the supply chain. Energy supply is indeed a significant issue, and Europe is still engaged in intensive discussions on how to ensure future energy security.

Meier, Global Executive Vice President of Kaijie Consulting: What the German automotive industry should do is learn from others. If others are in a leading position in something, then they need to reflect on whether innovation needs to be introduced.

The CEO of Mercedes Benz admitted at the auto show that the key to reversing the decline of the automotive industry is electrification and digitization. However, in the foreseeable future, the cost of producing electric vehicles will still be higher than traditional fuel vehicles. For German car companies, how to successfully achieve transformation will still be a difficult test.

German automotive industry professionals: The transformation of the German automotive industry cannot be separated from China

At this year's Munich Auto Show, individuals from the German automotive industry stated that the transformation of the German automotive industry cannot be separated from China, and they hope to deepen cooperation with China in the future.

CCTV reporter Yu Peng: In March this year, the European Union announced the approval of a regulation to ban the sale of gasoline powered cars and small passenger and freight vehicles from 2035 onwards. The pressure for German car companies to undergo electrification transformation has sharply increased. At this year's Munich Auto Show, major German car companies such as Volkswagen, BMW, and Mercedes Benz launched new electric concept cars and platforms, accelerating the pace of electric vehicles. Many German automotive professionals have stated in our interviews that Germany's electrification transformation cannot be separated from China.

German exhibitor Zipper: The global challenges we face can only be solved through cooperation. Therefore, we are always ready to cooperate, invest in China, and keep pace with global technological progress, while also providing services to global customers.

German exhibitor Oppom: As a global enterprise, we must maintain balance and strengthen business levels in various regions on a global scale. We believe in China and will continue to deepen our cultivation in China.

German exhibitor Konlinsong: The Chinese automotive market has strong innovative vitality. We can not only see large technology companies, but also many young startups who are constantly launching innovative technologies. We hope to leverage their technological advantages to not only meet the needs of Chinese customers, but also draw inspiration from them and introduce new technologies globally, especially in the digital field, including autonomous driving. We are collaborating with many Chinese companies to provide customers with comprehensive digital services, and we are constantly enriching them.

CCTV reporter Yu Peng: It is not surprising that German car companies have made such a statement. Looking at the Munich Auto Show, the number of Chinese companies participating this year has doubled compared to the previous one, involving multiple key areas such as vehicles, batteries, charging, artificial intelligence, and software, and is a world leading enterprise. It can be said that the industrial cooperation between China and Germany in the automotive industry is natural.

Data shows that since last year, German car companies have continued to increase their presence in the Chinese market. Volkswagen has invested over 50 billion yuan in China in just over a year, Mercedes Benz has established its second research and development center in China, and BMW's 10 billion yuan power battery project has also begun construction.

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