IMAP Germany Automotive & Mobility Sector Report | Tradition vs. Disruption

We are pleased to announce the first publication of our Automotive & Mobility Report which provides valuable insights and analysis on M&A dynamics and valuation developments in Europe within the Automotive & Mobility Industry.

The automotive market has faced numerous challenges in recent years and is undergoing a significant transformation. While the market has seen a partial recovery in passenger car production it remains unclear if and when production and sales numbers return to pre-Corona levels. The recent strong performance of Chinese manufacturers and the increasing shift in production towards China in recent years also indicate that the market environment for German and European suppliers will remain challenging. 

Automotive M&A activity in Europe has cooled off with 43 deals in H1 2023, down c. 20% compared to last year. Besides increasing financing costs, market participants are getting mor cautious. 

Valuation multiples continue to be under pressure. Especially suppliers in the segment chassis/underbody and engine/under-the-hood trade below 5x EBITDA 2023E with German and European players trading below their US and Asian competitors. Nevertheless, the current transformation offers new ways of rethinking customers behaviours and our understanding of the car itself und how we define mobility, concluding in new business opportunities.

Stay informed with our report and navigate the transformative landscape of the Automotive & Mobility Industry. Please contact us with comments or questions.