Startups are an important innovation factor for the automotive industry in Germany. This is shown by a current survey by the German Association of the Automotive Industry (VDA) in cooperation with the German Economic Institute (IW).
According to this, 60 percent of medium-sized automotive companies have already cooperated with startups – primarily to further develop their product portfolio.
However, the cooperation also brings advantages in digitization and the search for skilled workers.
The Automotive sector is changing and presents German car manufacturers with new challenges. Because with China’s rapid advance in electric cars, Germany’s dominance in the world‘s largest car market is over. Chinese electric vehicles are already increasingly being exported to Europe – the market share of the cars delivered to Germany from China has “SpiegelAccording to information, more than tripled in the first quarter.
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But amidst the challenges, there are also opportunities. A recent survey by the German Association of the Automotive Industry (VDA) in cooperation with the German Economic Institute (IW) shows that startups play a central role in the automotive industry. According to this, 60 percent of medium-sized automotive companies have already cooperated with startups – primarily to further develop their product portfolio and to digitalization to advance This makes startups an important innovation factor for the automotive industry in Germany.
That’s why car manufacturers rely on startups
The survey results show that companies in the automotive industry hope to gain various advantages from cooperation with startups. With a share of 70 percent, the majority relies on cooperation, especially when purchasing products and services. Startups are also a valuable opportunity for 68 percent of companies in the automotive industry when it comes to creating prototypes. The fear of possible bad investments seems to be only small. Because 44 percent of the companies stated that they invest in experimental concepts despite the possible risk.
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Participation in startups is also common at 51 percent. For larger companies in particular, this form of cooperation is more attractive than forming a joint venture with them.
The cooperation brings many advantages
Even if the specific goals vary, the survey shows that the cooperation between companies and startups largely or at least partially brings the desired results. Most companies (74 percent) are particularly successful in expanding their product portfolio thanks to the cooperation.
The goal of gaining access to new technologies has been at least partially achieved by 70 percent of the automotive companies surveyed. 34 percent even state that they have largely or fully achieved this goal. In addition, 66 percent of the companies surveyed believe that they can strengthen their ability to innovate by collaborating with startups.
The fast pace of startups creates uncertainty
Despite the many advantages, many medium-sized automotive companies find it difficult to get involved with startups, the survey shows. Because the probability of survival of the young companies is difficult to measure and they can therefore represent a risk factor for the already well-established companies in terms of reliability. From the point of view of medium-sized companies, there are also a lack of resources, an unclear benefit of cooperation and the differences between the potential cooperation partners possible obstacles.
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At the same time, however, cooperation with startups is a good opportunity access to skilled workers to get. A total of 32 percent of the companies surveyed benefited from the cooperation when they were looking for personnel. According to the analysis, small and medium-sized companies in particular could continue to benefit from cooperation with start-ups with the help of state subsidies.