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Car & Light Motor Vehicle Dealers in Germany - Market Research Report (2014-2029)

Chris Merklein Chris Merklein Frankfurt, Germany Last Updated: November 2024 WZ G45.11DE

Revenue

€246.3bn

2024

€250.1bn

Past 5-Year Growth

Profit

€X.Xbn

Employees

396k

Businesses

35,124

Wages

€XX.Xbn

Car & Light Motor Vehicle Dealers in Germany industry analysis

The wholesale and retail sector for cars and motor vehicles up to 3.5 tonnes has developed slightly positively over the last five years. The steady rise in net monthly household income led to increased investment in cars. However, the economic conditions deteriorated due to the coronavirus crisis, which reduced demand for motor vehicles, especially in 2020. In addition, bricks-and-mortar retailers had to remain closed at times or were only allowed to open under strict conditions. This led to a slump in sales in 2020. In the current year, the consequences of the coronavirus pandemic and the war in Ukraine are only likely to have a limited impact on the car trade. Between 2019 and 2024, industry sales increased at an average rate of 0.7% per year. In the current year, industry turnover is expected to grow by 0.6% to 250.1 billion euros.Positive effects are expected in the current year from an increase in net monthly household income. Together with an increase in the price of new and used vehicles, this should contribute to sales growth. However, demand for electric vehicles, for which consumers no longer receive a premium, is likely to be subject to great uncertainty. While the improved consumer and business climate is likely to have a positive effect on demand for cars, the rising price of petrol and increased use of public transport will probably limit industry sales.As in recent years, industry players will continue to be confronted with strong price competition and increasing competition from online retailers. Agency models with car manufacturers are likely to change the industry. Digital property presentation and modernisation of car dealerships as well as new models of car use such as car subscriptions will take centre stage. Competent employees are also becoming increasingly important in view of declining customer numbers and an increased focus on services. IBISWorld expects industry turnover to increase at an average annual rate of 1.1% over the next five years and reach €264.1 billion in 2029.

Trends and Insights

  • By 2023, there was a shift in demand towards electric and hybrid vehicles as well as SUVs. The unexpected end of the purchase premium for electric cars caused demand for them to collapse at the beginning of 2024. It remains to be seen how sales will continue to develop.
  • SUVs, vans and SUVs are the strongest-selling segment. The increase in vehicle tax depending on a vehicle's CO2 emissions could reduce demand for these vehicle types somewhat over the next few years.
  • As the population of a region increases, so does the sales potential of the local car dealerships. This is why populous federal states such as North Rhine-Westphalia, Bavaria, Baden-Württemberg, Lower Saxony and Hesse also have the highest number of car dealerships.
  • Car manufacturers are increasingly trying to promote direct sales to end customers and thus bypass car dealerships. Online platforms and ordering in particular are facilitating direct sales, which means that ordering directly from car manufacturers is increasingly becoming a substitute for the services of car dealerships.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 0.4 % over the past five years, to reach an estimated €246.3bn in 2024.

Trends and Insights

The trend is towards larger cars

  • In contrast to public incentives and sustainability aspects are the rising sales figures for SUVs. In 2019, SUVs accounted for 21.1% of all new car registrations, rising to 30.1% in 2023.
  • Additional trends and insights available with purchase
Car & Light Motor Vehicle Dealers in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Biggest companies in the Car & Light Motor Vehicle Dealers in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
VGRD GmbH
6,213.0
Emil Frey Automobil Holding Deutschland GmbH
3,290.2
Volvo Car Germany GmbH
1,936.7

To view the market share and analysis for all 5 top companies in this industry, view purchase options.

Products & Services Segmentation

Car & Light Motor Vehicle Dealers in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including SUVs, vans and off-road vehicles, Compact class car and Utilities and lorries up to 3.5 t. SUVs, vans and off-road vehicles is the largest segment of the Car & Light Motor Vehicle Dealers in Germany.

Trends and Insights

Demand for large cars such as SUVs remains at a high level

  • This segment includes SUVs, off-road vehicles and vans. These are vehicles with increased ground clearance.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Companies in this sector are active both in trade brokerage and in wholesale and retail. Their area of activity includes the trade in new and used motor vehicles such as passenger cars, including special vehicles, and light commercial vehicles and trailers that do not exceed a total weight of 3.5 tonnes. This does not include the trade in motor vehicle parts and accessories or the hire of passenger cars.

What's included in this industry?

SUVs, vans and off-road vehiclesCompact class carMid-range carUtilities and lorries up to 3.5 tSmall and micro carsUpper mid-range car

Companies

VGRD GmbHEmil Frey Automobil Holding Deutschland GmbHVolvo Car Germany GmbH

Purchase this report to view all 5 major companies in this industry.

Related Terms

SPORT UTILITY VEHICLE (SUV)UTILITIESABGASNORMHYBRID VEHICLE

Industry Code

WZ 2008

WZ 45.11 - Car & Light Motor Vehicle Dealers in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

By 2023, there was a shift in demand towards electric and hybrid vehicles as well as SUVs. The unexpected end of the purchase premium for electric cars caused demand for them...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

SUVs, vans and SUVs are the strongest-selling segment. The increase in vehicle tax depending on a vehicle's CO2 emissions could reduce demand for these vehicle types somewhat...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

As the population of a region increases, so does the sales potential of the local car dealerships. This is why populous federal states such as North Rhine-Westphalia, Bavaria...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Car manufacturers are increasingly trying to promote direct sales to end customers and thus bypass car dealerships. Online platforms and ordering in particular are facilitati...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

There are no major players in the industry. In the retail and wholesale car trade, many small and medium-sized players operate alongside a few corporate groups.

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of VGRD GmbH's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Emil Frey Automobil Holding Deutschland GmbH's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Volvo Car Germany GmbH's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • Description and key data for VGRD GmbH, and factors influencing its performance in the industry
  • Description and key data for Emil Frey Automobil Holding Deutschland GmbH, and factors influencing its performance in the industry
  • Description and key data for Volvo Car Germany GmbH, and factors influencing its performance in the industry
  • Description, key data and performance trends for 2 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Car dealers benefited indirectly from a sales subsidy for electric vehicles. In the course of the coronavirus crisis, the environmental bonus for electric vehicles was expand...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The industry's profit margin is at a low level. As pressure from manufacturers and online platforms is likely to increase further, the profit margin is expected to remain low...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Car & Light Motor Vehicle Dealers industry in Germany in 2024?

The market size of the Car & Light Motor Vehicle Dealers industry in Germany is €246.3bn in 2024.

How many businesses are there in the Car & Light Motor Vehicle Dealers in Germany industry in 2024?

There are 35,124 businesses in the Car & Light Motor Vehicle Dealers industry in Germany, which has declined at a CAGR of 1.3 % between 2019 and 2024.

Has the Car & Light Motor Vehicle Dealers industry in Germany grown or declined over the past 5 years?

The market size of the Car & Light Motor Vehicle Dealers industry in Germany has been growing at a CAGR of 0.4 % between 2019 and 2024.

What is the forecast growth of the Car & Light Motor Vehicle Dealers industry in Germany over the next 5 years?

Over the next five years, the Car & Light Motor Vehicle Dealers industry in Germany is expected to grow.

What are the biggest companies in the Car & Light Motor Vehicle Dealers market in Germany?

The biggest companies operating in the Car & Light Motor Vehicle Dealers market in Germany are VGRD GmbH, Emil Frey Automobil Holding Deutschland GmbH and Volvo Car Germany GmbH

What does the Car & Light Motor Vehicle Dealers in Germany include?

SUVs, vans and off-road vehicles and Compact class car are part of the Car & Light Motor Vehicle Dealers industry.

Which companies have the highest market share in the Car & Light Motor Vehicle Dealers in Germany?

The company holding the most market share in Germany is VGRD GmbH.

How competitive is the Car & Light Motor Vehicle Dealers industry in Germany?

The level of competition is high and increasing in the Car & Light Motor Vehicle Dealers industry in Germany.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • There are no industries to display.

Complementors

  • Motor Vehicle Manufacturing in Germany
  • Motor Vehicle Maintenance & Repair in Germany
  • Motor Vehicle Parts Retailers in Germany

International industries

  • Global Car & Automobile Sales
  • Automobile Wholesaling in the US
  • New Car Dealers in the US
  • Used Car Dealers in the US
  • Automobile Wholesaling in Canada

View all industries in Germany

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.