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legislation and strict emission limits imposed on and enforced by most large German cities, which are currently developing programs to significantly reduce emissions from transport in dense urban environments. One core element is the phase-out of traditional combustion engine vehicles from communal fleets and ongoing extensive testing and, in some cases, also the deployment of battery electric vehicles. Limitations exist on the supply side, where only small quantities of electric busses and light commercial vehicles are currently available from a limited number of manufacturers. Most traditional bus manufacturers are still in the preparation and development stage and have not started large-scale production of electrified buses. Due to lack of commitment and supply from conventional manufacturers, Deutsche Post AG even decided in 2014 to acquire German startup company StreetScooter, manufacturer of battery electric light commercial delivery vans, in order to get access to zero-emission vehicles suited for last-mile deliveries across Germany.
Specialty Equipment Market Summary (Automotive Aftermarket)
The total volume of the automotive aftermarket in Germany is estimated at around EUR 31 billion . The local market must be described as highly saturated and competitive and the trend towards high concentration and consolidation in the automotive aftermarket, along with increased globalization, continues. Aftermarket opportunities for new-to-market (NTM) companies in Germany are limited to innovative products, e.g. telematics, predictive maintenance & digital services, infotainment, connectivity, and safety products, as long as they comply with relevant technical (safety) and environmental standards and regulations.
Fierce global competition and warranty concerns on the consumer side impose high barriers for NTM manufacturers and products. Opportunities in Germany are limited, especially for product groups such as lubricants, additives, care products, as well as certain mass market IAM parts and accessories. Most NTM companies should be prepared to make considerable investments in marketing and/or local sales staff in order to gain market shares, which in most cases will only be achieved through displacement of competitors. Distributors and agents are often reluctant to take on new products and brands, unless a product’s USP is strong and the foreign manufacturer shows commitment to invest in the product development in Germany.
Remanufacturing Automotive Market
Total value for all manufactured products in the remanufacturing-intensive sectors (i.e. aerospace, automotive, EEE, furniture, heavy-duty truck and off-roading (HDOR), machinery, marine, medical equipment, rail) in Europe was valued at €1.5 trillion in 2015. According to the European Remanufacturing Network, the EU remanufacturing market has a potential to reach €90 billion by 2030 and is set to become an increasingly important element of the manufacturing industry.
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