The German and Austrian auto industries are moving in different rhythms this autumn: sentiment in Germany improved sharply in October, even as production and exports lag behind pre‑crisis levels; in Austria new‑car registrations and electric‑vehicle (BEV) demand are accelerating. For drivers, dealers and factory workers the result is a mix of cautious optimism and fast‑moving market shifts that will reshape sales, supply chains and investment across both countries.
Germany: sentiment recovers, but volumes stay depressed
Industry confidence in Germany climbed markedly in October: the ifo Business Climate Index for the automotive sector rose to -4.1 points from -33.2 in September, a swing the institute described as a significant improvement but still within a context of high uncertainty. Anita Wölfl of ifo warned the uptick may be temporary and stressed that Germany must “catch up to the leaders again in the technology race.”
That fragile improvement sits alongside sobering production and trade figures. The VDA reports German car production at about 3.03 million units in the first nine months of 2026 — four percent below the same period in 2025 and roughly 15% under 2019 levels — while exports through July fell by 4.0% year‑on‑year to roughly 2.0 million cars (export value €73.5bn). Battery‑electric vehicles already account for a notable share of activity: domestic BEV orders rose sharply and BEV registrations are increasing.
Austria: faster growth and a rising BEV share
Austria’s new‑car market is expanding: Statistics Austria reports 241,108 passenger cars registered from January to September 2026, up 12.1% versus the same period in 2025. Alternative‑drive vehicles make up two‑thirds of registrations (66.8%) and pure battery electrics accounted for 26.2% of new cars in that period — electric registrations jumped strongly in September (+80.6% year‑on‑year). Manuela Lenk of Statistics Austria highlighted the electric segment as the main growth driver for the market.
