Germany Online Car Buying Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2024-2032)

Germany Online Car Buying Market Growth

Germany stands as the largest automotive market in Europe, leading in both production and sales, representing approximately 25% of all passenger cars manufactured and nearly 20% of new vehicle registrations. In 2021, German automobile manufacturers produced over 15.6 million vehicles. Furthermore, Germany is recognised as the global centre for premium car production, with 65% of all premium branded vehicles manufactured by German original equipment manufacturers (OEMs). In the global context, 40% of all vehicles were produced in Europe, with Germany accounting for 23% of that total in 2021.

An increasing number of individuals in Germany are opting to purchase vehicles online. In 2022, 17% of new car acquisitions occurred through online platforms, a rise from 12% in 2021. The growing appeal of online car buying can be attributed to its convenience and flexibility. Furthermore, car leasing is gaining traction in Germany, with 35% of new car purchases in 2022 being made via leasing, compared to 29% in the previous year. The advantages of leasing, such as flexibility and reduced initial costs, resonate with a significant portion of the population. Additionally, SUVs are experiencing a surge in popularity, as they are perceived to be more practical and comfortable than traditional sedans. In 2022, SUVs represented 42.4% of new car registrations in Germany, an increase from 38.6% in 2021.

Key Trends and Developments

Rising digital transformation, changing consumer preferences, expansion of automotive retail models, and improved logistics and delivery solutions, are the major trends impacting the Germany online car buying market growth

July 2024

The Carwow Group, an online platform dedicated to the buying and selling of automobiles, successfully secured $52 million (£41 million) in a recent funding round aimed at enhancing its expansion efforts in the UK, Germany, and Spain.

April 2023

AUTO1.com, the foremost digital automotive platform in Europe, announced a 50% increase in its electric vehicle sales for the year 2022.

December 2021

Cazoo announced that it launched its online car selling and buying services in Germany and France, offering customers better value, selection, transparency, and convenience from the comfort of their homes.

Rising Digital Transformation

The increasing ubiquity of smartphones and mobile devices has significantly transformed the way consumers access the internet, leading to a notable shift in their shopping behaviours. As more individuals rely on their mobile devices for browsing and making purchases, there is a corresponding rise in the popularity of online car buying platforms.

Changing Consumer Preferences

Consumers today increasingly prioritise the convenience and comfort of exploring, evaluating, and acquiring vehicles from the safety and familiarity of their own homes. The rise of digital platforms has revolutionised the automotive purchasing process, allowing potential buyers to browse a vast array of vehicle options without the need to visit multiple dealerships physically.

Expansion of Automotive Retail Models

Automobile manufacturers and retailers are increasingly embracing direct-to-consumer sales strategies via online platforms, circumventing conventional dealership networks. This approach provides a more efficient purchasing experience and frequently results in more competitive pricing.

Improved Logistics and Delivery Solutions

The provision of home delivery services for purchased vehicles significantly improves the convenience of online car purchasing. Customers value the ability to receive their new vehicle at their home. Additionally, flexible return and exchange policies offer consumers peace of mind, increasing their likelihood of buying a car online.

Rising Consumer Trust and Security

Online automobile purchasing platforms prioritise the implementation of strong security protocols to safeguard consumer information and financial transactions. The growing confidence in online payment systems and cybersecurity initiatives motivates a greater number of consumers to purchase vehicles online. Additionally, favourable reviews, ratings, and testimonials from previous buyers enhance the trustworthiness and credibility of these online car buying platforms.

Germany Online Car Buying Market Trends

Economic elements such as disposable income and consumer confidence play a significant role in shaping the online car purchasing landscape. When disposable income rises, consumers are more likely to make significant purchases, including high-value items like automobiles. This increase in financial flexibility allows consumers to explore a wider range of options, from new models to used cars.

The overall rise of e-commerce in Germany has facilitated the growth of online car sales. The increasing prevalence of online shopping has transformed consumer behaviour, with more individuals turning to the internet for their purchasing needs. This shift is particularly evident in the automotive sector, where consumers can now browse a vast array of vehicles, compare prices, and read reviews from the comfort of their homes. The convenience of online shopping, combined with the ability to access detailed information about vehicles, has made it an attractive option for many buyers.

Germany Online Car Buying Industry Segmentation

Germany Online Car Buying Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Vehicle Type

• Hatchback
• Sedan
• SUV
• Others

Market Breakup by Engine Type

• ICE
• Electric

Market Breakup by Category

• Pre-Owned Vehicle/Used
• New Vehicle

Market Breakup by Region

• North Rhine-Westphalia
• Bavaria
• Baden- Württemberg

Germany Online Car Buying Market Share

Based on the vehicle type, the market is segmented into hatchback, sedan, and SUV, among others. The SUV segment is projected to grow at a CAGR of 9.1% during the forecast period of 2024-2032. SUVs offer more interior space and cargo capacity compared to smaller vehicles. This versatility makes them appealing to families and individuals who require additional room for passengers and belongings.

Leading Companies in the Germany Online Car Buying Market

Major players are focusing on providing easy, convenient, and streamlined services to gain a competitive edge in the market.

• Mobile.de GmbH
• Heycar (Mobility Trader GmbH)
• Carwow GmbH
• WKDA GmbH
• Auto1.com GmbH
• AutoScout24 GmbH
• Others

The comprehensive report looks into the macro and micro aspects of the market. The EMR report gives an in-depth insight into the market by providing a SWOT analysis as well as an analysis of Porter’s Five Forces model.