German auto chief stresses long-term outlook on electric motoring

The global shift to electric vehicles is no longer about whether to transform, but making the transition sustainable and the supply chain resilient, the head of the German Association of the Automotive Industry said.

"The next stage is not just about accelerating the transformation, but about creating the necessary conditions to make it economically viable and internationally competitive," VDA President Hildegard Mueller said at the 2026 World New Energy Vehicle Congress in Haikou, Hainan province, last week.

The sector is pouring massive capital into electrification, batteries, software and digital production capacity; investments that will shape industrial capabilities for decades to come. Predictable, stable policy frameworks are essential for companies to commit to long-cycle spending, Mueller said.

German firms invested more than 7 billion euros ($7.95 billion) in China in 2025, hitting a four-year high. Bilateral automotive investment between China and Germany keeps rising, sustaining deep ties across the two nations' industrial value chains.

Mueller praised China's new energy vehicle sector for its rapid innovation and global influence. Chinese automakers launched over 230 new models in 2025, with shortened development cycles and fast-evolving full supply chains. The pace has accelerated global EV adoption while driving worldwide technical upgrades and cost optimization.

China's standout strength is its ability to scale up complete industry value chains at exceptional speed, creating a rich, highly competitive market ecosystem, she said. At the same time, German carmakers retain strengths in vehicle engineering, safety, complex system integration and the circular economy, and are rolling out tailored electric product lineups for Chinese consumers.

Complementary strengths create broad room for joint research and development. The two sides can deepen collaboration on complete vehicle development, key component breakthroughs, low-carbon mobility and carbon-neutral transitions.

Electrification is a global challenge that no single market can solve alone, Mueller stressed. Open cooperation and fair competition form the bedrock for continued industrial progress, she added.

The congress' NEV50@2035 vision - 50 percent market share for NEVs globally - remains relevant for the industry, Mueller said. Chinese and German automakers will compete and cooperate in parallel; rivalry should not lead to closed markets or fragmented supply chains, she added.