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EXECUTIVE SUMMARY
- What you need to know
- Opportunities
- Market size & forecast
- Outlook
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OPPORTUNITIES
- Embrace a 360° approach to car safety
- Assisted driving and safety features are a key priority
- Take a holistic approach to safety
- Partner with lifestyle brands to enhance the ownership experience
- Younger generations value connected features
- Elevate the ownership experience through collaborations
- A day in the life of a future connected car driver
- Arriving at the office ready and motivated
- Streamlining daily tasks to focus on the important things
- Technology is appealing, but comes at a cost
- Dumb cars can appeal to a niche consumer segment
- Highlight the driving experience and nostalgia to promote dumb cars
- Ford leverages nostalgia to market the Capri’s modern revival
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THE CONSUMER
- Car purchase plans and expected spend
- Growth will be fuelled by the quicker recovery of individuals with healthy finances
- Graph 1: car purchase plans, 2023-25
- Gen Zs and Younger Millennials are more inclined to purchase a car
- Graph 2: Germany, car purchase plans, by generation, 2025
- Most plan to spend €15-30k on their next car
- The role of tech in car purchasing
- Researching technology features is a key step in the car purchasing process
- Baby Boomers are more likely to research tech features
- Graph 3: agreement that it is important to research the technology features available in cars before purchasing one, by generation, 2025
- Younger generations prioritise tech
- Graph 4: agreement that tech features will be an important factor in future car purchases, by generation, 2025
- High spenders place greater emphasis on tech features
- Graph 5: agreement that tech features will be an important factor in future car purchases, by expected spend on next car purchase, 2025
- Gen Zs and Younger Millennials prioritise the latest technology over brand
- Graph 6: agreement that having the latest technology features in a car is more important than its brand, by generation, 2025
- Important tech features in a car
- Consumers prioritise tech features that provide safety and convenience
- Graph 7: important tech features in a car, 2025
- Highlight safety, comfort and built-in navigation when promoting tech features
- Driving assistance, safety features and navigation are becoming standard
- Focus on tech varies with car spend
- Graph 8: important tech features in a car, by expected spend on planned car purchase, 2025
- The importance of in-car entertainment will grow
- Importance given to tech features varies by generation
- Graph 9: important tech features in a car, by generation, 2025
- Younger generations seek connected features for a seamless home-to-car transition
- Even though the importance of smartphone connectivity will persist…
- …the importance of in-car operating systems will grow
- Concerns about tech features
- Cost is a major concern about car tech
- Cost is a major barrier
- Baby Boomers seek ease of use
- Consumers voice concerns about data security
- Interest in innovative tech features
- Automated diagnostics address a pain point
- Prioritise automated diagnostics and emphasise cost saving and planning
- Graph 10: interest in innovative tech features, 2025
- Leverage innovative tech features to attract younger generations
- Graph 11: interest in innovative tech features, by generation, 2025
- Enhance health and wellness in cars
- Gen Zs and Younger Millennials show greater interest in in-car payments
- Position autonomous cars as personal chauffeurs, freeing up time for other tasks
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INNOVATION
- Volkswagen unveils the ID.EVERY1 concept
- Sony Honda Mobility’s Afeela starts reservations for Afeela 1 in the US
- Tesla introduces rear-seat entertainment screen in its new Model Y
- BYD makes ADAS features accessible to all
- BMW showcases panoramic vision
- Automakers advance their operating systems
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THE MARKET
- Market drivers
- Consumer confidence is recovering, but remains uncertain
- Graph 12: financial consumer confidence, 2022-25
- Shifts in global trade agreements could drive inflation
- Graph 13: consumer price index, 2015-24
- EU safety regulations mandate additional safety features in cars
- Market size
- The German car market declined in 2024
- Graph 14: new passenger car registrations, 2020-24
- Market forecast
- The car market is set for minimal growth
- Car registrations are expected to remain stable
- Market segmentation
- Petrol cars continue to account for the largest market share
- Graph 15: car market segmentation, by fuel type, 2019-24
- Hybrid cars continue to gain market share
- SUVs remain in-demand
- Graph 16: car market segmentation, by body type, 2019-24
- Mini car segment declines, while compact car segment grows
- Market share
- Skoda shows remarkable growth to overtake Audi, Toyota makes it to the top 10
- Graph 17: car market share, 2021-24
- Volkswagen and Mercedes hold their positions, while BMW and Skoda gain ground
- Audi and Ford lose significant market share, while Fiat falls out of the top 10
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APPENDIX
- Report scope and definitions
- Market definition
- Generations
- Abbreviations
- Methodology – consumer research
- Consumer research methodology
- TURF analysis methodology
- A note on language
- Methodology – market size and forecast
- Forecast methodology
- Forecast methodology – fan chart
- Market size – volume
- Market forecast and prediction intervals – volume
There are several concerns about technology in the German car industry, but cost is the main one. It is therefore crucial to emphasise features in marketing efforts and clearly communicate their value.
German Car Industry Analysis — Current Landscape
The majority of Germans consider it important to research the tech features available in a car before making a purchase, with many considering them an important factor in their purchase decision, peaking among Gen Z. As this group increasingly enters the German car market, the importance of in-car tech is expected to grow.
Assisted driving and safety features are valued by German car buyers, highlighting the need to emphasise safety in marketing. Building an emotional connection through relatable experiences is key, as seen in Volvo’s EX90 ad.
For Gen Z and Millennials, connectivity and home-like convenience are important. Partnering with brands across lifestyle areas like entertainment or food can enhance appeal by simplifying their lives. However, as cars become more connected, concerns about data privacy and security mean expanding safety messaging to include digital protection will resonate.
German Car Industry Statistics
- German Car Market Share: The top two brands in the German car industry continue to take the lead in German car market share.
- Consumer Preferences in the German Car Market: 43% of buyers consider tech features to be an important factor in their future car purchases, peaking among Gen Z.
German Car Market Research — What’s Inside?
Key Topics Analysed in this Report
- Germans’ car purchase plans and expected spending.
- German car market size and five-year forecast, including an assessment of the possible impact of rising global uncertainty.
- The role of tech features in car purchasing, including their importance in future purchases.
- Important tech features in a car, such as assisted driving/safety, smartphone connectivity, and entertainment.
- Concerns about tech features, including high cost, risk of technical failure, and complicated user experience
- Consumer interest in innovative tech features, like automated diagnostics, autonomous driving, and in-car payment.
Meet the Expert Behind the Analysis
This report was written by Venkatesh Modi, Research Analyst. Venkatesh writes reports covering both the automotive and technology industries. During his studies, he gained practical experience in automotive market research while working at Volkswagen AG in Germany and India. He holds a Masters degree in Management & Engineering in Technology, Innovation, Marketing & Entrepreneurship from RWTH Aachen University.
Download Report SummaryGerman car industry statistics show that in-car technology is an important way to build appeal. Balancing safety with the connectivity needs of younger buyers is key to resonating with a wide buyer base.
Venkatesh Modi
Research Analyst, Germany
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