Further growth expected for auto industry

German automakers

About 30 years ago German automakers were among the first international companies to become active in China. Our technology and investments made key contributions to enable China as an automotive country to continually push up its revs.

In the early stages this built the foundations for the development of our member companies in China.

Since 2009 we have increased our market share by 3 percentage points to 20.5 per cent.

Of course, this success is not solely due to exports from Germany. In China, as in all other major automotive markets, we are pursuing our "two-pillar strategy" comprising exports from Germany and local production.

From 2005 German passenger vehicle production in China increased by a factor of eight to 3.5 million units in 2013. Last year alone, we recorded growth of 20 per cent, and the process is continuing this year.

The huge rise in China's importance as a production location for the German automotive industry can be seen by a longer-term comparison.

In 2000 German car production in China accounted for only 9 percent of total foreign production by German automakers. By 2013 this proportion had risen to 40 per cent.

Another illustration of the increasing significance of China is the fact that German manufacturers and their Chinese partners now produce more cars in the country than they do in the entire EU (excluding Germany), where they built over 2.8 million units in 2013.

Since 2000, China's share of total passenger vehicle exports by German makers has trebled. In 2013, 242,900 cars from German manufacturers were exported to China. Exports of cars from Germany to China in 2013 had a total value of just over 10.3 billion euros ($14 billion).

However, not only Germany benefits from this two-pillar strategy - exports combined with foreign production. This development brings advantages for China, too.

Local assembly has demonstrated faster growth than the exports from German plants. Today, looking back, this appears comprehensible to us - given the large Chinese market and the need for firms to have their own local production.

Yet this development had its foundation in early and very far-sighted decisions on the part of the companies. China attaches importance to having the highest possible amount of "local content" in vehicles. In this area German manufacturers and suppliers have made a considerable contribution in recent years.

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