Sharp Deterioration in Sentiment Among German Car Manufacturers Amid Fierce Chinese Competition

Berlin, Oct 5 (KUNA) -- The Ifo Institute, Germany’s largest economic research institution, announced on Monday that sentiment among German automakers deteriorated sharply in September amid pressure from intense competition from China. In a report issued from its Munich headquarters in southern Germany, the institute said the business climate index for the automotive sector fell to minus 35 points in September, down from minus 22 points in August, marking the worst assessment of companies’ business conditions since the start of the year. The institute added that firms expect their business conditions to remain at a low level in the coming months, noting that the vital sector remains mired in crisis. Companies’ expectations regarding exports and employment also declined, while their assessment of the volume of backlogged orders was worse than in the previous month. The institute attributed this trend to rising competition from Chinese companies, particularly in the electric vehicle sector, as Chinese firms are intensifying their presence in the European market. This downturn comes at a time when other German industrial sectors, including electrical and chemical industries, have seen an improvement in sentiment, a positive trend that has not yet been reflected in the automotive sector. (End)