Thuringia's auto industry in crisis: E-car boom is not enough!

Thuringia's auto industry in crisis: E-car boom is not enough!

The auto industry in Thuringia is currently under severe pressure. The switch to electric vehicles is booming and the East German factories play a key role in European automobile production. But the challenges are great: more and more automotive suppliers are struggling with considerable difficulties, and the falling demand for new cars is exacerbating the existential crisis. Jens Katzek, managing director of the “Automotive Cluster East Germany”, emphasizes how important Thuringia is for electric car production, but even successes like the Opel plant in Eisenach cannot compensate for the falling new registrations. Compared to the values ​​before the corona pandemic, sales figures have fallen by 15 percent, which looks anything but rosy for many companies in the region.

The current figures from the Federal Republic show how severe the problems are at the base: In May 2025, the KBA reported over 43,000 newly registered battery-only cars (BEV), which means an increase of an impressive 45 percent compared to the same month last year. Nevertheless, these numbers remain behind the pre-Corona values. Overall, new registrations are still below the 2019 figures, which is causing problems for already struggling suppliers. According to ADAC, 239,297 cars were newly registered in May, a slight increase of 1.2 percent. The average CO₂ emissions of new cars also fell by 12.1 percent - a positive sign, but not enough to allay the industry's concerns.

The challenges for the industry

In Thuringia, many companies are facing closure or have to shut down their facilities. Cost pressure, problems in the supply chain and political decisions put enormous strain on companies. Thousands of jobs are at risk and the situation affects the entire business location. However, Katzek is hopeful that innovative approaches can help solve the problems. Over 50 percent of the companies surveyed in a recent survey are planning new products for 2023, and almost half want to enter new business areas. This shows that despite the challenges there is also courage and innovative strength.

The biggest concern for companies remains the shortage of skilled workers and the constantly rising raw material, material and energy costs. These risks became clear in a comprehensive analysis by the Thuringian cluster management, which deals with the future prospects of the automotive industry. The megatrends of electromobility and digitalization are very popular, which not only influences product development, but also the company's strategy.

Positive potential and outlook

Despite the difficulties, the automotive and supply industry in Thuringia emerges as the industry with the highest sales. The results of the current studies will be incorporated into future economic policy strategies and support offers. The ministry and LEG have set themselves the goal of making the industry future-proof and further strengthening the existing location advantages, such as technological expertise and qualified employees.

Another positive signal is the continued growth of electric vehicles. According to information as of April 1, 2025, the number of private electric cars in Germany exceeded the one million mark. This is a clear sign that demand for electric vehicles could remain strong in the future. The proportion of electric cars will continue to grow due to increasing acceptance and advances in electromobility.

Here in Thuringia it is now important to set the right course. It will be exciting to see how companies can adapt to the new challenges and at the same time benefit from the opportunities offered by electromobility. The situation remains tense, but the industry's innovative strength gives reason for hope. The comprehensive study, which will be carried out in summer 2023, could provide further valuable insights and help companies find the right course for the future.

For further information about developments in the auto industry and new registration numbers, we recommend taking a look at the reporting from Thuringia24, ADAC as well as the in-depth analysis of LEG Thuringia.