Car Trade in Reverse as Germany’s Deficit With China Jumps 143%

Europe is importing Chinese hybrid vehicles by the shipload — up more than 400% this year — while Germany’s car exports to China have slumped, leaving gold as its largest single shipment in return, the South China Morning Post (SCMP) reported.

Cars remain Germany’s biggest industrial export to China, but they no longer top the customs ledger. (Photo: BYD) 

Germany, the EU’s largest economy and manufacturing hub, saw its trade deficit with China soar 142.8% to $17.4 billion in the first eight months of 2025, compared with $7.2 billion a year earlier.

Cars remain Germany’s biggest industrial export to China, but they no longer top the customs ledger.

By August, shipments of unwrought gold — despite Germany having no active mines — and medicines had surpassed car exports.

Combustion-engine passenger car exports plunged 43.9%, from $7 billion to just $4 billion.

Exports of automatic gearshifts fell 12.9%, car parts 32.3%, industrial machines 16.2%, and control instruments 25.5%, according to SCMP calculations based on Chinese customs data.

Meanwhile, China’s plug-in hybrid vehicle exports soared 439.4% in value, from $524 million to $2.8 billion, as exporters sought to sidestep anti-subsidy duties that apply only to pure electric models.