FACT SHEET

Future Mobility
in Germany

ISSUE 2022/2023

Germany is recognized the world over for its outstanding
automotive industry and excellence in engineering. FromAsia to the Americas, German cars embody highly cherished values of innovation, reliability, safety, and design.
The World’s Automotive Hub
The automotive industry is the largest industry sector in Germany, generating turnover of almost EUR 411 billion in 2021.
This is more than a seven percent increase in annual turnovercompared to the year 2020. The automotive industry remains
the strongest and most export-driven industry in Germany –with export volume of almost EUR 274 billion. Innovation isa key priority – 72.6 percent of companies have introduced
innovative products to the market in the past three years –with R&D spending just below EUR 50 billion in 2021. German
automotive companies are responsible for around one thirdof global auto industry R&D investment, with similar investment levels forecast for 2022.
Innovation Leader
Germany is Europe’s leading production and sales market.
The country’s excellent R&D infrastructure, complete industry
value chain integration and highly qualified workforce create
an internationally peerless automotive environment. Almost
ninety percent of the workforce are engaged in ongoing R&D
activities, allowing the sector to develop the new technologies that address tomorrow’s mobility needs.
Changing Mobility Market
The global auto industry is in a period of radical transformation due to e-mobility and connected and automateddriving technology developments. More than 135 years after
inventing the automobile, Germany remains the world’s
automotive innovation hub – leading the way forward to anew mobility era.

Germany’s Automotive­Industry in Numbers
Manufacturing Leader

24%of domestic industry revenue directly generated by
the automotive industry (2021)

3.1 million

passenger vehicles produced – almost 30% of allpassenger cars in the EU (incl. UK and EFTA)

Auto R&D Nation

1/3of global R&D spending made byGermany OEMs

134,225highly skilled R&D personnel

Export Success20%of global auto exports from Germany

77%

auto export rate

Source: VDA, Stifterverband, Destatis 2022

→ Visit our website: www.gtai.com/automotive

MARKET OPPORTUNITIESElectric Mobility in Germany
Germany’s internationally leading automotive industry
is showing the electric mobility way ahead. The sector isresponsible for around one third of all electric mobility
and hybrid propulsion patents globally.
Demand for electric vehicles is rising as range and performance improvements drive uptake levels and battery costs
continue to fall. By the end of 2021 there were more than one
million electric vehicles registered. Germany now officiallyhas more than 1.3 million electric vehicles on its roads. The
government is expecting more than two million electricvehicles by 2023. This is supported by infrastructure ofaround 51,200 AC and more than 9,100 DC charging stations.
Electric Mobility Innovation Leader
Significant efforts are being made in the area of battery
and cell research – particularly in the area of material andprocess technologies for lithium-ion systems that will leadto a new generation of high-energy and high-performancebattery systems. German automotive manufacturers haveincreased their range of available electric vehicles. German
automotive society ADAC has identified 97 series with morethan 230 model variations.
Electric Mobility Policy Support
Germany’s Federal Ministry for Economic Affairs and Climate Action will continue the electric vehicle subsidy program to stimulate uptake in the electric vehicle market.

The focus is being put on subsidizing vehicles which have a
proven impact on climate protection. From January 1, 2023,
battery electric vehicle (BEV) purchases as well as fuel-cellvehicles with listed prices of up to EUR 40,000 will receive a
so called “environmental bonus” (Umweltbonus) of EUR
4,500. Vehicles with a listed purchase price between EUR
40,000 and EUR 65,000 will still receive a bonus of EUR
3,000. From January 1, 2024, all battery electric vehicles andfuel cell vehicles with a listed purchase prize of up to EUR
45,000 will receive a bonus of EUR 3,000. From September 1,2023, on only private persons are eligible for electric vehicle
subsidies.
The government is investing EUR 500 million into extending
the public charging infrastructure, to mention the tenderfor 1,000 fast-charging locations supported by EUR 2 billion
and other public charging infrastructure funding.
Electric Mobility ActLegislation like the Electric Mobility Act already grants special privileges to electric vehicles – including the lowering orwaiving of fees and exemptions from certain access restrictions – to normalize the owner structure of the electric passenger car market. All BEVs are also exempt from the motorvehicle tax for 10 years until 2030.

Electric Mobility Advances in Germany
MarketDevelopment

Electric vehicles

1,300,000

Infrastructure
Rollout

German OEMe-models>70

Public charging
infrastructure

Private charging
infrastructure

DC Charging

Wallboxes>9,100AC Charging>51,200
Source: GTAI Research 2022

~900,000

Autonomous Driving in Germany
policy in a controlled scenario; and the general public experience digital mobility technologies first hand. Planned digitaltest beds include the Digital Highway Test Bed in Bavaria, digital test beds in cities, and the cross-border Franco-German
Digital Test Bed.

Germany’s automotive sector is planning to revolutionize the market again – with a number of digital test beds
and forecast regulation changes.
With German companies leading the way in autonomous
drive technology patents, a new market of 58 million units
is forecast for 2030. Gradual but steady implementation toeveryday use will ensure consumer acceptance and exploit
the vast opportunities for safety, comfort and businesses.

Making Autonomous Driving a Reality
Germany’s Bundesrat has adopted the Act on Autonomous
Driving, thereby paving the way for the regular operation ofautonomous vehicles on German road – making Germany thefirst country in the world where this is possible. Autonomous
driving scenarios foreseen in the act include the transportation of people and/or goods in the first and last mile, shuttle
traffic, people movers, HUB traffic, and demand-oriented
offers in off-peak times. Dual mode vehicle use, for automated valet parking for example, should also be possible.

Digital Test Beds
Germany’s Federal Ministry for Digital and Transport is
supporting the trialing of new technologies in a number ofdigital test beds to unlock the potential of digital mobility.
The planned test beds allow the promotion of automated andconnected driving technologies in designated zones. Realworld driving data will be made available to the industry;
policy makers can evaluate the efficacy of digital transport

Digital Test Beds in Germany*
SchleswigHolstein

New technologytrials
LOCATION
AVANTAGES
Germany's digital test beds are testing

MecklenburgVorpommern

digital mobility applications in real-time
regional, urban and highway scenarios.

Hamburg
BremenRegional

Niedersachsen

CityBerlinHighwayTest Bed
Niedersachsen

Dresden

KasselDüsseldorf

Brandenburg

SaxonyAnhalt

North RhineWestphalia

Germany is the first country in theworld to allow autonomous vehicles
on public roads.

Braunschweig

Thuringia

SaxonyHessenRheinlandPfalz
MerzigFranco-German Digital
Test Bed

Frankfurt

Saarland

Digital Highway Test Bed ​Test Bed
Baden-Württemberg

Bavaria

Ingolstadt
BadenWürttemberg*Additional digital test beds in other regions in the country
are planned in the future. Please contact Christoph Mester(christoph.mester@gtai.com) for further information and updates.
Source: Federal Highway Research Institute 2022

Easyride MunichFriedrichshafen

Automotive Industry Trends
Carbon-emission reduction targets, smart traffic management, and the government’s electric mobility initiative are major drivers for future mobility growth.
Automotive engineers in Germany are hard at work developing autonomous technologies for future mobility concepts
as well as improving battery technologies, enhancing smart
driving concepts, car connectivity, and adapting lightweightmaterials and electronics for future mobility needs.
Tomorrow’s Autonomous Technologies
As safety risks due to machine error is the main concern forcustomers, safe autonomous drive technologies and applications are major factors driving the connected car market andacceptance of autonomous vehicles. A new generation ofradar, camera and lidar sensor technologies monitoring thecar’s environment enable the vehicle to react in a swift andindependent fashion. Increased deployment of autonomous
technologies will see collision avoidance, danger warning,
and independent parking system solutions as well as “wellbeing” functions like driver drowsiness detection increasingly
become standard. Real-time traffic and highway assistantsolutions will develop over time to become pilots, thereby
paving the way towards highly automated (2025) andautonomous cars (2030). It is expected that highly and wholly
automated and autonomous cars will enjoy market share ofaround 20 percent by 2035.
Car Connectivity
The car of the future will be significantly shaped by thedevelopments made in the “Internet of Things.” Vehicle connectivity will significantly change the industry into previously
unheard levels of automation, vehicle management and in-car
entertainment – or car-to-X communication to be more precise. A recent study ranks the most innovative OEMs worldwide according to connected cars applications. Three German
OEMs are among the top ten at the top of the list.
Smart and Comfortable Driving
The advent of individual vehicle intelligence and safety iscomplemented by smart interaction and communication withother road users and real-time data servers. These mobility
management developments support increased driver awareness and more fuel-efficient driving. Enhanced vehicle management solutions (e.g. monitoring and reporting) help reduce
utilization costs while entertainment and home integration
functions (e.g. head-up display and voice control applications)effectively transform the car into a living room on wheels.
When in the car these smartphone-like services will be further
enhanced by national 5G rollout. According to the Centre ofAutomotive Management, a number of German auto producers already count among the most innovative "connected car"manufacturers.

Energy Efficiency
The transformation of mechanics to mechatronics is essential
to fulfill the European Union emission targets. Zero-emission
mobility will be a prerequisite by 2035, with average emissionof new cars already to be reduced by 55 percent by 2030.
Key automotive electronics fields of activity are electronic
control units including motor and battery control units toregulate fuel and electricity supply, cylinder activity, andexhaust control. Germany has been transitioning to sustainable mobility for decades using a holistic approach including
ICE downsizing, public charging infrastructure rollout and,more importantly, establishing 46 percent of electricity supply from renewable resources to provide a home for clean
electric mobility.
Battery Technology Improvements
Battery performance is critical to market acceptance. The battery system determines vehicle efficiency and counts as thesingle vehicle element with the greatest wealth creation share(direct share of value added of up to 40 percent). Between
60 and 70 percent of this value can be directly attributed
to the battery cell – making it a key element in the value
chain as well as the central element of the vehicle. Battery
technology developments are having a significant effect onelectric vehicle total cost of ownership as R&D and production costs fall. This is helping to increase the attractivenessof electric vehicles as the cost-competitiveness gap between
ICE vehicles is dramatically reduced. Developments made todate in first- and second-generation cells and battery systems
have helped create energy density levels of around 200 Wh
per liter for today’s battery packs. Energy and power density
levels will continue to improve, with further marked developments expected in terms of safety (crash resistance) andservice life.
Lightweight Material Construction
Lightweight construction is a key enabling technology for
manufacturing the cars of tomorrow and addressing the challenges of digital transformation, electric mobility and energy
and resource efficiency. McKinsey reports that vehicle manufacturers will need to increase lightweight component levels
from 30 percent to 70 percent by 2030 in order to compensate
for electric drive weight increases, more efficient engine
technology and CO2 reduction goals. Germany, like no othercountry in Europe, boasts a lightweight construction cluster
network that covers the complete industry value chain.

SUCCESS STORYBest Practice Example: CATL
Germany Trade & Invest provides a range of inward
investment services to international investors. After
careful consultation with the individual investor, a support program of consultancy and information services isdrawn up to help set the stage for investment success.
Here we provide a typical example of the services provided to a recent investment project.

“By bringing the most advanced lithium-ion
battery technology to Germany and developing the local production capacity, CATL isoffering even better product solutions andfaster response times to our customers.”
Dr. Robin Zeng, Founder of CATL
www.catlbattery.com
Company Information
Established in 2011 in Ningde, Fujian Province, China, Contemporary Amperex Technology Ltd. (CATL) focuses on R&D,production, and sales of battery and energy storage systems.
CATL went public in 2018 and generates revenue of almost
EUR 2 billion with 15,000 employees. With 12 GWh of shipments it is the leading lithium-ion battery supplier for automotive applications and has established numerous contracts
with German OEMs. Together with support from Germany
Trade & Invest (GTAI), CATL sought a cell and battery production site in order to satisfy growing demand from Europeanmarkets.
Germany Trade & Invest Support
GTAI was involved from the point of site identification,
having prior involvement with CATL in the establishment ofoffices in Munich in 2014 and the opening of an R&D facility
in Berlin in 2017. GTAI’s experts provided the full range of services including practical advice on a number of labor, energy,and logistics cost-related issues as well as tax and incentives
information. GTAI also established specific location proposals
according to CATL’s specific criteria, provided site analysis
support and organized site visits.
Location Factors
The most important criteria for the site selection in Germany
were the availability of qualified and loyal labor, secure
investment environment, excellent infrastructure, proximity
to the customer base and the energy transition towards
renewable energy sources thereby facilitating more sustainable cell production. It is the company’s first factory outsideof China and Germany was in competition with a number ofother European countries for this significant factory investment. CATL’s EUR 240 million investment decision for the Ger-CATL Project Specifications
Company

Contemporary Amperex
Technology Ltd. (CATL), ChinaIndustryBattery production andenergy storage

Investment objective

Construction of manufacturing
facility to realize global expansion
strategy

Investment location­criteria· Highly qualified and loyal­workforce· Secure investment environment· Excellent infrastructure· Proximity to customers· Energy transition

GTAI support· Full range of GTAI services including strategic advice, advice onlabor, energy, and logistics costs· Tax, legal and incentives­information· Location proposals· Site visit organization

Selected location

Erfurter Kreuz, Thuringia

Investment volume

EUR 240 millionman state of Thuringia will result in the creation of one of
the largest lithium cell factories in Europe, creating some 600
jobs in the region over the next four years. It is the largest
single foreign direct investment project supported by GTAI
and the largest Chinese greenfield investment project in Germany to date.
Location Advantages
CATL’s decision to settle in Germany will bring it closer toGerman and other European carmaker brands, providing amajor boost for the region and the further development ofelectric mobility in Germany. CATL Chairman Dr. Zeng believes
the investment will increase opportunities across industry
for CATL products and provide a strategic customer relations
boost. As customer inquiries are picking up quickly, CATL iscurrently considering expanding the planned production
capacity of 14 GWh to more than 100 GWh.

→ Contact our mobility specialists to explore the i­ ndividual
investment opportunities available to your business in­Germany’s fast-moving electric mobility sector.
stefan.dibitonto@gtai.com
christoph.mester@gtai.com

Our Support for Your Business in Germany
Germany Trade & Invest (GTAI) is the foreign trade and inward
investment agency of the Federal Republic of Germany. We
advise and support foreign companies planning to expand
into the German market and assist German companies seeking to enter global markets.

All investment-related services are provided entirely freeof charge and all enquiries are treated with the utmost
confidentiality.

Investor Consulting
Our Investor Consulting division of specialist industry teams
provide international investors in all sectors with comprehensive consultancy services specific to each individual investment project. Services include:

Contact us
Christoph Mester
Mechanical & Electronic Technologies
Christoph.Mester@gtai.com

Stefan Di Bitonto
Mechanical & Electronic Technologies
Stefan.DiBitonto@gtai.com· Market and industry reports· Market entry analyses· Business and tax law information· Funding and financing information

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Publisher: Germany Trade and Invest
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Executive Board: Dr. Jürgen Friedrich, Chairman/CEO,
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portraits: ©GTAI Illing & Vossbeck Fotografie
Notes: All rights reserved ©Germany Trade & Invest, July 2022
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