Car trade in reverse as Germany's deficit with China jumps 143 per cent

Trade Dynamics - Europe has significantly increased imports of Chinese hybrid vehicles, with imports rising over 400% this year, while Germany's car exports to China have declined sharply [1][6] - Germany's trade deficit with China surged 142.8% to US$17.4 billion in the first eight months of 2025, compared to US$7.2 billion a year earlier [2][3] Export Trends - German car exports, particularly combustion-engine passenger cars, fell by 43.9%, from US$7 billion to US$4 billion in the first nine months of 2025 [5] - Shipments of automatic gear shifts from Germany decreased by 12.9%, and other car parts saw a decline of 32.3% [5] Shifts in Product Dominance - Saloon car shipments from Germany have been overtaken by unwrought gold and medicines in customs data, indicating a shift in export priorities [3][4] - China's shipments of plug-in electric vehicles (PHEV) to Europe increased by 439.4% in value, from US$524 million to US$2.8 billion, as exporters adapt to avoid anti-subsidy duties [6] Battery Imports - Shipments of lithium-ion batteries from China to the EU rose by 36.6%, reflecting Europe's growing reliance on Chinese technology for its electric vehicle initiatives [6][7]