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Germany struggles with rising prices, low purchasing power

The German market might offer a model for why European car sales are stagnating and how to revive them. By Will Girling

Despite the challenges it faces, some commentators believe the German automotive sector is ready to compete in an increasingly complex global industry. However, there’s trouble brewing for consumers at home: a May 2025 automotive pricing study from Jato Dynamics and Oliver Wyman warns of a looming affordability crisis. Automakers and dealers, it contends, must address pressing economic factors that could reshape the national market.

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