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2026-07-03, 08:31

ifo: Business Climate in German Automotive Industry Deteriorates

The Business Climate Index in the German automotive industry fell to -21.4 points in June, down from -20.7* points in May. Companies assessed their current business situation as considerably worse than in the previous month. At the same time, they are significantly less pessimistic about the coming months. “The zigzag course we saw in sentiment in the automotive industry during 2025 has so far continued this year,” says ifo industry expert Anita Wölfl.

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Business in Germany and other European countries is providing support for the industry. Electromobility continues to be a growth driver in Germany, as Wölfl explains. From January through May 2026, just under 284,000 new battery electric vehicles (BEVs) were registered in Germany. That’s 40% more than in the same period last year, bringing the average share of BEVs among all new registrations so far in 2026 to just under 24%. From January through May 2025, the figure stood at 17%.

*Seasonally adjusted

More information: www.ifo.de

ifo Institut für Wirtschaftsforschung e.V., München



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