Major automakers of Germany such as Volkswagen, BMW, and Daimler made a recovery from the coronavirus crisis year of 2020 well in worldwide comparison, according to a study published by Ernst & Young (EY) on Monday.
Revenues of German automakers dropped only 10% and unit sales were down 14 percent and profits dropped by 26 percent, while French automakers, for a name, were particularly affected as profits plunged 84 percent, according to the study.
“Companies with a strong China share benefited from the relatively stable development on the Chinese sales market. By contrast, those operating largely in Europe suffered massive losses in some cases,” said Peter Fuss, senior advisory partner in the automotive field at EY.
For all three major German automotive groups, the Chinese sales market remained an important destination last year, the study noted. With 39.4 percent of new cars sold by Volkswagen, BMW, and Daimler in 2020 was handed over to a Chinese consumer.
The 17 international automotive companies surveyed only recorded a 4-percent decline in passenger car sales in China in 2020. At the same time, sales in the U.S. dropped by 14 percent year-on-year and even plunged by 25 percent in Europe, the study noted.
“The Chinese sales market had an important function for the world, but particularly for the German automotive industry last year,” said Fuss. “Sales generated in China were able to stabilize the industry as a whole, while there were painful losses in the U.S. and particularly in Europe.”
