German automakers close innovation gap with Chinese competitors

German automotive manufacturers are beginning to narrow the technological gap in electric vehicle innovation compared to Chinese rivals. According to industry expert Stefan Bratzel of the Center of Automotive Management, the period of decline for German manufacturers appears to have passed, noting that while Chinese companies still lead, their rate of innovation is no longer increasing at the same pace.

In recent innovation rankings, Mercedes-Benz improved its position by three places to rank fourth, while the Volkswagen Group emerged as the most innovative German manufacturer, securing second place with 24 series innovations in the first half of the year. Geely remains the top-ranked manufacturer globally.

Conversely, the Chinese automotive industry faces internal challenges. Despite massive production volumes, including over 16 million New Energy Vehicles, the sector is struggling with significant overcapacity. Reports from MERICS and Germany Trade & Invest indicate that production capacities exceed market demand, leading to intense price wars, shrinking margins, and underutilized factories.