In spite of ongoing trade tensions, Dax corporations demonstrate strong performance
In a year marked by politically and economically challenging conditions, the majority of the 40 DAX companies managed to generate more revenue and profit compared to the previous year. However, this was not the case for all sectors, with DAX automakers experiencing notable revenue declines.
According to available information, traditional German automakers within the DAX index faced significant revenue pressure in 2025 due to trade tariffs, economic slowdown, and the costly shift toward electric vehicle (EV) and autonomous vehicle technology. Specifically, companies transitioning from traditional auto sales to EVs and robotics have faced reduced sales and loss of key incentives such as EV tax credits and emissions credits, severely impacting their revenue streams.
Among DAX automakers, those heavily reliant on combustion engine sales and slower to adapt to EV and robotics shifts appear to have experienced the sharpest declines. While exact revenue figures by company are not detailed in the search results, the challenges highlighted—such as losing regulatory money and falling retail sales—have hit traditional automakers the hardest as they make this transition.
EY's analysis shows that some heavyweights on the stock exchange left clear traces of braking in their interim results for the second quarter. The second quarter of 2025 saw the companies in the first German league of the stock exchange generate around 434.6 billion euros in revenue, a decrease of almost 2% or around 8.2 billion euros compared to the previous year. This was the third-highest value ever recorded in a second quarter for the 40 companies in the German stock index.
However, not all news was grim. Business in the USA and China ran worse for many companies in the second quarter of 2025. Despite this, 20 of the companies examined reported increasing profits. Engine manufacturer MTU Aero Engines saw the strongest increase of 20 percent in profits.
Despite the revenue losses, the earnings before interest and taxes (EBIT) of the 40 companies in the German stock index decreased by 3.3 percent to around 46.9 billion euros within a year. This decrease was mainly due to the struggles faced by DAX automakers.
EY expects significant revenue losses in the billions for the export-oriented German industry on the US market due to higher import tariffs in the coming months. The strongest declines in revenue were reported by energy company RWE and car manufacturers Porsche, Mercedes-Benz, and BMW.
As the transition to EV and autonomous vehicle technology continues, it remains to be seen how traditional German automakers will navigate these challenging conditions and emerge stronger on the other side.
[1] Source: Various online news outlets and financial reports.
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