REGIONAL REPORT infrastructure in transport , energy , communications and other critical areas . Higher public investment would also help with external rebalancing , raise productivity and potential growth , and support green and digital transitions .
To further boost potential growth , they also urged the authorities to continue efforts to cut red tape , promote digitalisation and innovation , and deepen the European single market ( including by progressing towards a Capital Markets Union ). They also encouraged continued efforts to strengthen labour supply , including by enhancing the integration of immigrants and further promoting women ’ s full-time labour market participation . In that context , they welcomed ongoing efforts to expand access to childcare and eldercare services and reduce the effective marginal tax rate on second earners .
IMF Executive Directors also welcomed recent measures to streamline approval processes for solar and onshore wind projects . They underscored that additional efforts are needed to meet Germany ’ s ambitious climate targets , including in the deployment of renewable power .
For the year as a whole , the VDA continues to expect 577,900 new registrations of electric cars
Electric vehicle production
According to VDA ( the German Automotive Industry Association ), around 2.7 million cars have been produced in Germany since January . However , compared to the pre-COVID crisis year of 2019 , production after eight months of the current year was still 14 % below the previous figure . Demand for electric vehicles in Germany has been impacted by the abrupt end of funding by the federal government
For the year as a whole , the VDA continues to expect 577,900 new registrations of electric cars ( including 393,200 BEVs , 184,500 PHEVs ). This would correspond to a decline of 17.5 % ( BEVs : -25%, PHEVs : + 5 %) compared to 2023 . Domestic production of electric vehicles is developing better ; around 1.3 million newly produced cars are expected (+ 4 %). The significantly better development of production compared to the market is due to exports , said the VDA .
Automotive production line with robots in Germany .
Image : Shutterstock . com .
Image : Shutterstock . com .
“ 80.3 % of all electric cars produced in Germany are exported all over the world , and for purely battery-electric BEVs the figure is as high as 81.2 %. This means that the export rate of electric cars produced in Germany is even higher than the export rate for all domestic production , which is 77.8 %. In the current year , sales of electric vehicles are 22 % below the previous year ’ s level ,” commented the VDA .
Machine tool demand
In August 2024 , the VDW ( German Machine Tool Builders ’ Association ) reported that orders received by the German machine tool industry in the second quarter of 2024 were 28 per cent down on the same period last year . Orders from Germany fell by 13 per cent , whereas those from overseas dropped by 33 per cent .
“ Orders received in the first half of 2024 were 26 per cent down on the same period last year . Domestic orders were seven per cent lower . Orders from overseas were 33 per cent below the previous year ’ s figure ,” said the association .
“ The order volume is at its lowest level since Q4 2020 ,” summed up Dr . Markus Heering , Executive Director of the VDW . “ Overseas orders fell significantly , whereas those from Germany held up better . However , this is not due to the hopedfor turnaround , but rather the result of a handful of project-based business deals ,” he continued .
“ Overall , business levels are down across all customer sectors and markets . The picture was slightly brighter in individual sectors such as aviation , medical technology , power engineering and shipbuilding . Interest in electric vehicles is currently sluggish , as evidenced by the weak sales figures . Performing significantly better than new machine business at present are service , components , repairs , maintenance and conversions . Automation remains a key driver in the sector ,” added the VDW .
The VDW does not expect orders to stabilise , to any great extent , until the second half of 2024 with hopes being pinned on the final quarter , in particular . Major industry trade fairs such as AMB in Stuttgart and EuroBLECH in Hanover could provide impetus . Nevertheless , orders are expected to be significantly down in 2024 as a whole , said the VDW .
“ Our forecasting partner , Oxford Economics , is expecting to see a distinct broad-based recovery in demand for machine tools across all regions in 2025 and 2026 . The international market is predicted to pick up strongly again , however , the momentum in Germany is expected to be significantly weaker ,” said the VDW .
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