Published by Global Banking & Finance Review®
Posted on February 24, 2026
2 min readLast updated: April 2, 2026
Add as preferred source on GoogleIW says German car and parts exports to China fell by about a third in 2025 to under €14bn, over half below the 2022 peak. U.S. tariffs, weak EU demand, the EV shift and China’s price war add pressure as Chancellor Merz visits China.
BERLIN, Feb 24 (Reuters) - German car exports to China plunged by roughly a third in 2025, extending a steep decline that has wiped out more than half the sector's shipments since their 2022 peak, according to a study released by the German Economic Institute (IW) on Tuesday.
Exports of cars and parts fell to under 14 billion euros ($16.49 billion) last year, down from nearly 30 billion euros three years earlier, underscoring the rapid erosion of Germany's foothold in its most important foreign market.
Carmakers — which make up Germany's largest industrial sector — are facing their toughest test in decades, squeezed by higher U.S. import tariffs, weak demand in Europe, a costly transition to electric vehicles and an intensifying price war in China.
The IW data comes as Chancellor Friedrich Merz travels to China for the first time, a closely watched trip expected to shed light on how Europe's biggest economy seeks to recalibrate ties with its largest trading partner amid mounting competitive and geopolitical strains.
($1 = 0.8490 euros)
(Writing by Friederike Heine, Editing by Linda Pasquini)
A new IW study reports that German car and parts exports to China plunged by roughly a third in 2025, extending a multi‑year decline from the 2022 peak.
Higher U.S. tariffs, softer European demand, the costly transition to EVs and fierce price competition in China have eroded Germany’s auto export competitiveness.
Exports of cars and parts to China fell to under €14 billion in 2025, down from nearly €30 billion in 2022, more than halving over three years.
Explore more articles in the Finance category
