- German automakers report an 18% drop in EBIT for the first half of 2024.
- Japanese manufacturers see a 37.1% profit increase due to yen depreciation.
- Global automotive industry faces growing challenges due to investments in electromobility and supply chain disruptions.
Stuttgart, August 24 (FFN) – The global automotive industry is experiencing a downturn, with German manufacturers once again reporting a decline in profits during the first half of the year. According to a new study by the auditing and consulting firm EY, as reported by the DPA news agency, the major German automotive giants—Volkswagen, BMW, and Mercedes-Benz—collectively achieved an earnings before interest and taxes (EBIT) of €25.9 billion from January to June 2024. This represents an 18% decrease compared to the same period last year.
EY’s analysis, which evaluated the financial data of the world’s 16 largest car manufacturers, revealed that while total revenues for all groups increased by 3.7% in the first half of the year to over €1 trillion, the operating profit dropped by 7.8%, reaching €80.4 billion.
In contrast, Japanese automakers experienced a significant boost, with profits rising by 37.1% alongside a 14.2% increase in revenues. This growth is largely attributed to the ongoing depreciation of the yen, which has made Japanese products more competitive in international markets.
Despite the robust performance of Japanese manufacturers due to favorable currency effects, the overall situation in the global automotive industry remains challenging, according to EY analyst Constantin Gall. Manufacturers are facing growing pressure on profits due to high investments in electromobility, supply chain disruptions, model changes, and discount campaigns. These factors are expected to lead to widespread cost-cutting measures across the industry, Gall noted.
The report underscores the shifting dynamics within the global automotive sector, where regional economic conditions and currency fluctuations are playing an increasingly pivotal role in shaping the performance of major automakers.
