The automotive manufacturing market alone was worth USD 596.8 billion in 2024. With aerospace, logistics, and new mobility services included, the sector is one of Germany’s largest economic drivers. 

Yes – Germany is the world’s second-largest EV producer, with strong battery R&D, a rapidly expanding charging network, and generous incentives for manufacturers and fleet operators.

Germany was the first country to approve Level 4 autonomous driving on public roads. It hosts leading AI research institutes, sensor technology developers, and real-world digital test beds.

Germany is developing electric and automated aircraft, eVTOL air taxis, and advanced satellite systems. Strong clusters and partnerships make it a hub for sustainable air mobility.

Investors can access R&D grants, investment allowances, and labor-related subsidies. GTAI experts can connect you with the right programs for your project.

Germany remains one of Europe’s most crisis-resistant destinations for foreign direct investments. Germany’s stable business environment, highly skilled workforce and robust industrial base, giving mobility investors confidence in long-term automotive and aerospace ventures.

Electric vehicle production and charging infrastructure are expanding at pace, supported by national incentives and EU climate goals. Software defined vehicles and advanced components are gaining market share, offering high growth opportunities for suppliers ready to innovate.

Germany offers a dense network of clusters and suppliers, integrated into the EU single market, which supports resilient supply chains. The automotive and aerospace industry profiles emphasize the role of regional specialization and proximity to OEMs in mitigating global supply chain risks.

The optimal market‑entry model for a mobility supplier in Germany depends on your company’s resources and strategic goals. Many international suppliers succeed by partnering with established OEMs or joining regional industry clusters, gaining immediate access to customers, suppliers, and R&D networks . With extensive experience supporting international companies, Germany Trade & Invest provides tailored guidance and hands‑on support to help you establish and grow your business in Europe’s leading mobility market.

Bavaria and Baden Württemberg are leading hubs for automotive software development. Saxony and Lower Saxony host major battery production facilities . North Rhine Westphalia is a center for hydrogen technologies . Hamburg and Bremen are key aerospace and space industry locations.

Businesses can access a range of public incentive programs, including R&D grants, investment allowances, training subsidies, and EU funding schemes. These instruments can be combined to maximize support for mobility projects .

The aviation industry and aerospace sector in Germany are currently home to 125 start-ups. The country's new space hotspots are located in the greater Munich area (32 companies), Berlin (15 companies), and the Rhine-Main region (13 companies ). In 2024 , the German aerospace industry increased its total turnover by 13% to €52 billion. Employment, international order volume and investment in climate-neutral and hybrid aviation are rising rapidly and foster innovation and growth .