German carmakers Volkswagen, Mercedes-Benz and BMW continue to lose ground to their international competitors. Their total revenue in the first half of 2026 decreased by 2.9% to around EUR 284 billion, according to an analysis by consulting company EY. For comparison, the total revenue of the 19 analyzed automotive concerns in the world increased by 3.6% to nearly EUR 1.05 trillion
This is the third consecutive decline in revenue for German manufacturers in the first half of the year. Of the 19 companies in the analysis, 15 increased their turnover, while the German groups occupy 16th, 17th and 19th place in terms of growth rate. Tesla, Suzuki and China's Geely reported the strongest growth.
The decline in profits is even more serious. The combined operating profit before interest and taxes (EBIT) of Volkswagen, Mercedes-Benz and BMW decreased by 19% to EUR 13 billion - the lowest level since the pandemic 2020. At the same time, the combined profit of all manufacturers considered increased by 11.4% to EUR 43.7 billion.
Among the main reasons, EY cites high production costs in Germany, energy prices, administrative burden and lower productivity relative to labor costs. According to EY automotive expert Konstantin Gall, the high share of production in Germany, long considered a symbol of quality and competitive advantage, is increasingly becoming a structural disadvantage.
The Chinese market remains a particularly serious problem. Sales of the three German concerns there fell by 25% in the first six months of the year. China's share of their total global sales has fallen from 28.9% to 23.5% in just one year. Reasons include weaker demand for expensive premium models and the growing popularity of local Chinese brands, especially in electric cars.
At the same time, Chinese manufacturers are increasing the pressure in Europe. Their sales in the European market grew by 44% in the first half of the year, even though their total global sales fell by 8%.
The crisis is also affecting employment. Volkswagen, Mercedes-Benz, BMW and major suppliers such as Bosch, ZF, Mahle and Aumovio are planning cuts affecting tens of thousands of jobs. The German trade union IG Metall has announced protests in more than 200 locations under the slogan "Future instead of cuts", demanding more investment in German factories, battery production and autonomous technologies.
The data shows that the German car industry is under pressure from higher domestic costs, its weakening position in China and growing competition from Chinese and American manufacturers.