Annual Report 2018 The automotive industry in facts and figures Annual Report 2018 The automotive industry in facts and figures Thank You. Mobility connects us. Lets us discover new things, meet our friends, get to work and run er- rands. It provides all of us with growth and prosperity. Today’s mobility is unthinkable were it not for the invention of the motorcar over 130 years ago. And mobility is constantly being reinvented. Resulting in increasingly safe, environmentally and climate-friendly mobility for the future. This is due to the 820,000 people who have made Germany the world’s leading automotive nation. Some of whom we present here. And to all of whom we say: Thank you. www.vda.de/en www.mobilitaet-von-morgen.de 6 FOREWORD FOREWORD 7 Foreword our industry. German car manufacturers our changeover premiums. In addition, and confidence. That’s what I stand for produced 16.5 million cars worldwide in our member companies support cities personally. And we are by no means resting 2017 – a new record high. They pro- and municipalities in numerous projects on our previous achievements. Manufac- duced 10.8 million cars at their locations and work on specific solutions. turers and suppliers are working together abroad, so that the foreign production intensively on continuing to strengthen also achieved a new record. At the same It is just as necessary to objectify the de- the international leading position of the time, domestic production remains at a bate. The fact is, nitrogen oxide emissions German automotive industry. This annual very high level at just under 5.7 million. in road traffic have fallen by around 70 report gives you an overview of the diverse The automotive industry is shaping the more and more electric buses, electric In addition to car manufacturers, com- percent since 1990. And there is more topics and challenges that the VDA and its transformation of mobility. Our industry vans and electric trucks on the market. mercial vehicle companies also form a progress. The annual limit for nitrogen members have in common. has initiated a transformation process Nevertheless, electromobility will not be the significant part of the German automo- oxide was exceeded in 90 cities in 2016. that is fundamentally changing products, only drive form. The efficient combustion tive industry. Manufacturers of trucks, In 2017, it was only 65. technologies and services. The challeng- engine also has a future. Natural gas en- vans and trailers and bodies were also es electrify us in the truest sense of the gines, hydrogen and climate-neutral e-fuels successful. Automotive suppliers form The automotive industry is Germany’s word, they motivate and inspire us. We also have tremendous opportunities. the backbone of the German automotive key industry. It ensures added value and want the car, we want to reinvent mobility. industry. With over 540 companies, they jobs. Over 820,000 people were em- Bernhard Mattes, President People are changing their mobility behav- In addition, we are advancing digitaliza- are by far the largest and most diverse ployed by manufacturers and suppliers in Verband der Automobilindustrie e. V. ior faster than ever before. The company tion. A look at the global patent applica- group of manufacturers in the VDA. 2017 – about 30,000 more than two years (Automotive Industry Federation) expects solutions for environmentally tions for networked and automated Whether electromobility, digitalization or ago. We are investing in the future of friendly, sustainable mobility. Our mission driving shows how successful we are autonomous driving, your innovations are Germany. No other industry here spends is to meet these expectations. Two inno- here: around half of the patents in this crucial in the transformation process of more on research and development – vation fields will be of great importance field are registered by German compa- the automotive industry. 22 billion euros per year at the last count. here: electromobility and alternative nies. The German automotive industry However, this prosperity and success drives, on the one hand, digitization and is thus number 1 internationally. We While we are working on future innova- must not be seen as a reason to sit back, automated driving, on the other. are pursuing a clear goal with this new tions, we are keeping busy discussing the neither for companies nor for politi- technology. Autonomous driving should future of the diesel engine and air quality cians. The very good economic situation Electromobility in particular is the key be safer, more efficient and more sus- in cities. It is therefore an urgent concern currently is misleading some in politics to technology for the emission-free, cli- tainable. And not only are technologies for us to gain new confidence in the au- think that Germany has to do no more to mate-friendly mobility of the future. That is changing with digitalization, but so too tomotive industry and to restrengthen our maintain its competitiveness. The Federal why German manufacturers are signifi- are the companies themselves. Man- credibility. This will not happen overnight. Government should again focus more on cantly expanding their range of models: ufacturers and suppliers will become It will take time. This means that we do this economic-political task. Because new from 30 to over 100 electric models by service providers, which offer intelligent what we say and that reliability and trans- dangers are emerging internationally as 2020. In the same period, manufacturers mobility solutions. Car sharing, ride parency determine our actions. well. Brexit or the new trade policy in the and suppliers are investing a total of 40 pooling, e-scooter sharing, mobility US may become serious threats to our billion euros in alternative drives, with a platforms and mobility apps are only And that is why we are working in- globally networked supply chain. That is focus on electromobility. And the German the start of this trend. tensively to improve air quality. Soft- why we are supporting the Federal Gov- automotive industry is already globally ware updates are being implemented ernment’s policy and that of the European successful as a leading provider of elec- Mobility behavior will therefore also on several million vehicles. German Commission, which advocate free trade tromobility. In Western Europe, we have a change. Using cars instead of owning manufacturers are investing in the and counter protectionism. market share of new approvals for electric them: that is the trend we are designing. German government’s Mobility Fund passenger cars of around 50 percent. In And yet the need for your own car is with a three-digit million sum. We have The automotive industry is aware of its addition to electric cars, German commer- growing. Global car sales are rising and accelerated the renewal of the car stock responsibility towards people and the cial vehicle manufacturers are launching 2017 and 2018 have been good years for with new low-emission vehicles with community. We are promoting new trust 8 COntEnt COntEnt 9 Content Foreword 6 Innovation and Technology 98 Diesel, Gasoline and Hybrid Engines 100 The Automotive Industry and its Markets 10 Combustion Engine Fuel Consumption and Emissions 102 Pollutant Reduction Technology 106 Current Automotive Market in the First Half of 2018 12 EU Type Approval 107 The Automotive Year 2017: Key Figures and Data 14 Electromobility 108 Research and Development 16 Other Alternative Drive Systems 114 International Automotive Markets 18 Networked and Automated Driving 115 German Market 22 Research Association for Automotive Technology (FAT) 121 German Automobile Manufacturers’ Production and Exports 24 Logistics 124 Markets for the Supplier Industry 26 Markets for Commercial Vehicles and Buses 28 Markets for Trailers and Bodies 30 Safety and Standards 126 Suppliers and Medium-sized Businesses 31 Aftermarket 36 Traffic Accidents in Germany 128 Historic Vehicles 38 Commercial Vehicle Safety Systems 129 Auto Banks 41 Pedestrian Safety 130 Anti-theft Protection 132 Quality Management 133 Economic Policy and Infrastructure 42 Standardization 136 Information Security 140 Economic Situation in Germany 44 European Policy 46 Brexit 48 International auto show and events 142 Trade and Investment 52 Energy Policy 58 Experience the Future: IAA Cars 2017 144 Infrastructure 60 IAA Commercial Vehicles 2018 146 Passenger Transport 64 Initiative “Tomorrow’s Mobility” 148 Urban Mobility 65 Events 150 Freight Transport 68 Taxes and Customs Duties 70 Legal Policy 72 Index 154 List of figures and tables 156 Environment and Climate 76 Index 158 Road Traffic and CO₂ Emissions 78 CO₂ Regulations for Automobiles and Light Commercial Vehicles 80 CO₂ Reductions in Heavy Commercial Vehicles 84 Decarbonizing Transportation 86 Automobile Energy Efficiency 88 Air quality 90 National Diesel Forum 94 European Chemicals Regulation REACH 96 10 THE AUTOMOTIVE INDUSTRY AND its MARKETS THE AUTOMOTIVE INDUSTRY AND its MARKETS 11 The Automotive Industry and its Markets At home, in Europe and in the world, the German automotive industry continues to be successful in 2017 and 2018. Groups and SMEs, car manufacturers and suppliers, truck, trailer and bus manufacturers – they all rely on two recipes for success: innovation and internationalization. Susanne Jung, Slavicist & Economist, Global Assistant, Global Purchasing and Fleet Management, Kiekert AG Heiligenhaus 12 THE AUTOMOTIVE INDUSTRY AND its MARKETS THE AUTOMOTIVE INDUSTRY AND its MARKETS 13 Current Automotive Market in the First Half of 2018 The balance sheet for the first half of 2018 in the international passenger car Things are also going well in Europe (EU28 and EFTA), where 8.7 million new markets is predominantly positive. A total of 28.8 million vehicles were sold in the passenger cars were registered — around 3 percent more than in the same period Record half-year for Europe. three largest sales regions of China, USA and Europe, representing an increase of of the previous year.