Automotive

The automotive industry is at the heart of the German economy. No other industrial sector is as important for prosperity and employment in this country. The deep-rooted and fragmented value-added network links a multitude of other industries to the automotive economy.

LAST UPDATE

01/10/2021

TYPE

Executive Summary

CONTRIBUTORS

Christian Saxenhammer, Chris Schindler

Current Developments

The automotive industry in the midst of change

The automotive industry is going through one of the most trend-setting and exciting phases in its history. Technological advances, especially with regard to alternative drive systems, are enabling the conceptualisation of new business models such as ridesharing. The fast-growing sharing economy and easy access to capital are noticeably reducing the barriers to market entry.

Growth Rates

2020

-13.3%

2021

+3.0%

2022

+6.0%

Trends

Consolidation

The consolidation of the automotive industry in Germany is progressing. With the recovery from the Corona pandemic, a trend towards size and thus a wave of takeovers is emerging.

Transactions

Our Sector Transactions

0

Highlight Transaction

Whitesell Germany GmbH & Co KG x Koninklijke Nedschroef Holding B.V.

Number of M&A transactions - DACH region, 2021 (as of August)

112

Significant Transactions

Volkswagen AG X Europcar Mobility Group S.A. (2021)

Adler Pelzer Group X STS Group (2021)

Future Trends

The competitive landscape in the automotive industry will change fundamentally in the future. As the importance of the software component increases, more and more technology companies are entering the market. While data exchange and automated driving will become essential components of the mobility of the future, equally efficient and high-quality production of vehicles and components will remain highly relevant.

Our View

The automotive industry is facing a fundamental structural change. Production and manufacturing processes of manufacturers and suppliers are continuously automated, which results in a profound change of the value chains. In the future, the focus will no longer be on the car itself - rather, mobility must be considered as a whole. While the market holds great potential, at the same time numerous industry participants are in a tense situation. The pressure to consolidate within the industry is increasing, especially in the medium-sized market environment.

People & Voices

Saxenhammer has in-depth technical and industry knowledge and can draw on a broad network of industry experts with many years of transaction experience.

"I think we will see a lot of consolidation, especially in the automotive industry. Even before the corona virus, the industry was in a state of upheaval. Businesses are trying to increase their own depth of added value by taking over suppliers."

Christian Saxenhammer

Managing Partner

Sector Update

Saxenhammer professionals regularly release content on current affairs and market trends to stimulate thought and discussion. We share exciting analyses, real-time market insights, and company news with the world.