Finance
German Auto Sector Sentiment Markedly Improves in October, Finds Survey
Published by Global Banking & Finance Review®
Posted on November 5, 2025
1 min readLast updated: January 21, 2026
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German auto sector sentiment improved in October, with Ifo index rising. Business and export expectations are higher despite ongoing supply issues.
October Sees Significant Improvement in German Auto Sector Sentiment
BERLIN (Reuters) -Sentiment in Germany's beleaguered automotive sector improved considerably in October, although it remained clearly in negative territory, a survey showed on Wednesday.
The Ifo institute's business climate index for the sector that is facing chip supply problems, high tariffs and competition from China improved by 8.4 points to -12.9 points.
"Business expectations in the automotive industry in particular are markedly brighter. Although still negative, they are higher than they have been for two years," said Ifo's sector analyst Anita Woelfl in a statement.
The index measuring the sector's expectations leaped by 18.2 points to -3.9 in October, with companies citing a strong rise in demand as well as high capacity utilisation in production.
Export expectations also rose to 18.0 points in October and once again slightly exceeded the comparatively high level in the previous month of 16.7 points.
Carmakers have been facing a supply crunch since the Chinese-owned but Netherlands-based Nexperia, which makes billions of simple but ubiquitous chips for cars, was seized by the Dutch government in late September.
(Writing by Miranda MurrayEditing by Madeline Chambers)
Key Takeaways
- •German auto sector sentiment improved in October.
- •Ifo index rose by 8.4 points to -12.9.
- •Business expectations are higher than in two years.
- •Export expectations increased to 18.0 points.
- •Supply issues persist due to chip shortages.
Frequently Asked Questions about German auto sector sentiment markedly improves in October, finds survey
1What is the automotive industry?
The automotive industry encompasses all companies and activities involved in the design, development, manufacturing, marketing, and selling of motor vehicles. It includes car manufacturers, suppliers, and service providers.
2What is a business climate index?
A business climate index is a statistical measure that reflects the overall economic environment for businesses in a specific sector or region. It is often based on surveys of business leaders regarding their expectations and current conditions.
3What are chip supply problems?
Chip supply problems refer to shortages or delays in the availability of semiconductor chips, which are essential components in modern vehicles and electronics. These issues can disrupt production and affect sales in the automotive industry.
4What is capacity utilization?
Capacity utilization is a measure of how fully a company or industry is using its production capacity. It indicates the percentage of potential output that is actually being achieved, reflecting efficiency and demand.
