Sentiment in German auto sector deteriorates in November, survey finds

• Reuters

• Published On Dec 3, 2025 at 02:33 PM IST

Sentiment in Germany’s automotive sector deteriorated once again in November as companies became more pessimistic in their business expectations, a survey showed on Wednesday.The Ifo economic institute‘s business climate index for the sector dropped to -20.0 points in November from -13.4 points the month before, reversing a sharp rise reported in October.

“These ups and downs in the business climate reflect the very high and rising level of economic policy uncertainty in Germany and worldwide,” said Ifo industry analyst Anita Woelfl.

Companies’ more pessimistic business expectations were the main driver behind the fall, with that index decreasing to -23.0 points from -4.6 points in October.

While incoming orders stabilised by September, and orders from the euro zone even rose sharply in the January-September period, companies do not expect any fresh impetus from international business in the coming months, the survey said.

Germany’s automotive sector has struggled under competition from Chinese producers and high US tariffs, in addition to recent chip supply issues due to a dispute over Nexperia.

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