The global automotive industry is in the middle of one of the most severe crises in the past decades. Sales, high costs for electromobility and political uncertainties put a strain on the industry.
After an analysis of EY The profits of the largest car companies have broken down by almost 49 percent worldwide in the first half of 2025 – only 43 billion euros.
German auto industry loses massive – declines also with suppliers in Austria
Die German manufacturer Volkswagen, BMW and Mercedes-Benz had to accept a profit minus of 38 percent. They recorded a minus of four percent in turnover – with hard consequences for the value -added Suppliers in Bavaria, Baden-Württemberg and Austriathat are closely intertwined with the car industry. In Austria, tens of thousands of jobs hang on the exports of motor, battery and software components.
US car maker and Renault deep in the red numbers
Also the US corporations Ford and General Motors Massive losses reported: their profits decreased by 43 percent. The situation in France and Japan is particularly dramatic: Renault, Nissan, Stellantis and Mazda wrote loss of more than eleven billion euros in the first half of the year. The crisis is exacerbated by high callback costs, weak demand and the staggering transformations towards electromobility.
Success in China – BYD, Geely and Great Wall Motor attacks
In contrast, the Chinese car manufacturer continue. BYD, Geely und Great Wall Motor Increased their profits by one percent, their sales climbed by more than 20 percent. Drivers are the expander Chinese e-car marketStrong state subsidies and increasing export numbers to Europe. BYD has long since overtaken Volkswagen in the Chinese home market in sales.
According to the ACEA (European automobile manufacturer association) the proportion of Chinese electric cars in the new registrations in Europe is already over twelve percent-and the trend is rising. This increases the pressure on the competitiveness of German and European brands enormously.
“Massive transformation” – western carmaker under reform printing
“The western automotive industry is facing a profound transformation- in the middle of a massive crisis,” warns Axel Preiss, head of the car and mobility division at EY Austria. Manufacturers such as Volkswagen and Mercedes invest billions in Electromobility, battery technology and software platformsbut at the same time tariffs, supply chain problems and slow inquiries press the margins.
Research institutes such as the IFO Institute point out that German industry invested almost 45 billion euros in new technologies in 2024 alone-significantly more than the competition. Still, they stay Chinese manufacturer faster, cheaper and globally aggressive.
EY – a leading voice in the automotive industry
The analysis quoted in the article comes from EY (Ernst & Young), one of the world’s largest advisory and examination companies. EY has been accompanying the automotive industry for years in strategy, digitization and transformation – with experts who know the complex challenges of the industry exactly. Ey’s figures and assessments are therefore highly regarded in the economy and provide a reliable overview of the condition and future of the global automotive industry.
This makes EY’s expertise an important basis for assessing the current crisis and the development of new strategies in Germany, Austria and other automotive locations.
