German automotive industry’s export contribution was the highest in July amongst the country’s exports, according to German Institute of Economic Research (IFO), as reported by China’s automotive manufacturers association (CAAM). Germany is an auto export-oriented country and was hit by the worst economic downturn in decades in Q1. Higher exports also means that production in the country has improved which drives demand for auto feedstocks and components. 

 

Germany’s auto sector was severely affected by the pandemic and a high share of exports marks a point of economic recovery. Several factories in Germany were forced to suspend operations during COVID-19 lockdown leading to poor production figures. Germany’s auto transition from petrol/diesel to electric vehicles also suffered due to the pandemic. 

 

IFO stated that many countries have started recovering in July. Germany’s manufacturing export expectations tracking index rose to 6.9 from a negative 2.2 in June. Export business has improved in July and is expected to increase going forth. 

 

Mercedes Benz high-end cars and its electric vehicles showed signs of recovery, said Daimler towards the end of July. Volkswagen also commented that it expects sales to grow in China’s high-end automotive sector in 2020. BMW’s data also indicated sales in China to have increased in June ending quarter. 

 

Auto sales have improved in July, globally, depicting reviving economies. With major global carmakers reporting positive sales, the demand for auto components is expected to rise, thereby boosting demand for steel, aluminium, zinc, lead and other metals. 

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