Munich’s Automotive Recruitment Market in 2025

Munich is not just the capital of Bavaria—it’s the beating heart of Germany’s automotive
legacy. Nowhere is this more evident than at the BMW Museum, where the brand’s
century-long journey unfolds in a stunning spiral of innovation, design, and engineering
excellence. From early aircraft engines to futuristic electric prototypes, the museum offers
a vivid reminder of how deeply embedded the automotive industry is in Munich’s identity.
BMW’s global headquarters, the iconic four-cylinder tower, stands as a symbol of both
tradition and transformation—mirroring the very challenges and opportunities facing the
automotive job market in 2025.

Job Growth and Shifts in the Automotive Sector

The automotive industry in Germany is experiencing a mixed employment trend. While
traditional roles are declining, new opportunities are emerging in tech-driven areas:

– IT jobs in the automotive sector have grown by 25% since 2019 and 85% since 2013.

– Automotive engineering roles—primarily at manufacturers—have increased by 14%, while metalworking jobs in the supplier industry have declined by 16%.

– Overall, the industry has lost 46,000 jobs between 2019 and 2023, but gained 29,000 in emerging areas, such as software development and technical R&D

EV Job Growth and Market Expansion

Germany’s electric vehicle (EV) sector is booming, and Munich is at the heart of this
transformation:

– The EV market is projected to generate $55.4 billion in revenue in 2025, with a CAGR of
6.75% through 2029.

– Battery-electric vehicle (BEV) sales are expected to grow by 75% in 2025, reaching
660,000 units.- Plug-in hybrid electric vehicle (PHEV) sales will rise by 8%, totaling 207,000 units.

– Domestic EV production is projected to increase by 24%, with 1.7 million EVs expected
to be manufactured in Germany in 2025.

– The transition to electric mobility is expected to create 100,000 new jobs by 2030,
particularly in battery cell manufacturing, charging infrastructure, EV software and systems
engineering, and supply chain and sustainability roles.

Hybrid Vehicles: A Practical Bridge

Hybrid vehicles are gaining momentum as a practical alternative to full electrification.
Munich-based OEMs are investing heavily in hybrid powertrains, balancing sustainability
with performance. Recruitment Implication: Engineers with expertise in both combustion and electric systems
are in high demand. Battery specialists and emissions analysts are also seeing increased
hiring.

Software-Defined Vehicles (SDVs)

SDVs are reshaping the industry, with software now controlling critical vehicle functions.
Munich companies are hiring aggressively in embedded systems, AI, and cybersecurity.
Recruitment Implication: Software engineers, cloud architects, and OTA update specialists
are among the most sought-after profiles.

Autonomous and Connected Mobility

Level 3 automation is rolling out commercially, and Level 4 testing is expanding. Munich’s
firms are investing in robotics, computer vision, and V2X communication.
Recruitment Implication: Talent in smart traffic systems, sensor fusion, and UX design for
connected vehicles is in high demand.

Strategic Gaps and Digital Transformation

Despite innovation, 39% of automotive companies in Germany report being in the early
stages of digitalization. Only 18% are optimistic about Germany’s future as an automotive
hub. Recruitment Implication: Strategic roles in digital transformation, ESG compliance, and
change management are growing. Companies are seeking leaders who can guide them
through this transition.

Talent Shortages and International Hiring

Germany’s aging population and skill gaps are intensifying the talent crunch. Around 25%
of automotive employees will retire by 2035, creating urgent demand for new talent.
Recruitment Implication: International hiring is essential. Munich firms are increasingly
recruiting globally, especially in IT, mechatronics, and energy technology. However,
cultural fit and language skills remain key.

Challenges in Southern Germany’s Automotive Job Market

Despite its industrial strength, Southern Germany—especially Bavaria—is facing mounting
challenges:

– Economic Pressure: The German economy remains in recession, with the automotive
sector contributing significantly to the downturn.

– Competitiveness Crisis: The Business Climate Index for the automotive industry fell to-40.7 points in January 2025.

– EV Uncertainty: The abrupt end of EV subsidies and slow infrastructure rollout have dampened consumer confidence and hiring momentum.- Global Competition: German automakers are losing ground to Chinese and American EV manufacturers.- Structural Challenges: High labor costs, rigid management structures, and slow
adaptation to digital trends are hindering progress.

– Job Cuts: Major automakers and suppliers are planning mass layoffs, affecting thousands of roles across Southern Germany.
Recruitment Implication: The market is volatile. Recruiters must navigate uncertainty,
focus on future-proof roles, and support companies in strategic workforce planning.

Employment and Unemployment Trends in Southern Germany

Southern Germany, particularly Bavaria and Baden-Württemberg, has long been a
stronghold of industrial employment. However, the automotive sector is now facing
significant headwinds:

– Unemployment Rate: Germany’s unemployment rate remains at 6.3% as of June 2025,
the highest level since September 2020.

– Unemployed Persons: The number of unemployed has risen to 2.914 million.- Underemployment: Including those in part-time or marginal roles, underemployment affects 3.579 million people, with a rate of 7.5%.- Job Vacancies: Notified vacancies have dropped by 9.8% year-over-year, down to 632,000.

– Employment Levels: There are 34.9 million employees subject to social insurance
contributions. Recruitment Implication: Southern Germany’s labour market is under pressure from
structural shifts, economic uncertainty, and global competition. Recruiters must focus on
reskilling, regional mobility, and tapping into underutilized talent pools.

Conclusion: Navigating a Complex Landscape

Munich’s automotive recruitment market in 2025 is a landscape of contrasts—declining
legacy roles and booming tech-driven opportunities. For recruiters, the challenge is to
anticipate shifts, embrace international talent, and align hiring strategies with the industry’s
evolving needs. But in Southern Germany, resilience and innovation will be key to
overcoming the current crisis and shaping a sustainable future.

About YS Global Search (YSGS)

YS Global Search was founded in February 2024 in Duisburg, Germany. Based on our vision, mission and values, we provide the best talent acquisition experience to our clients and the best career consulting experience to our candidates. We specialize in headhunting and executive search for local management positions in Europe, especially Germany. We are not just a recruitment company that delivers a pool of candidates to our clients and a job to our candidates. We promise to be a business partner to our clients, enhancing and strengthening their organization through the introduction of experienced and professional talent. We also promise to be a lifelong career development partner to our candidates, supporting their growth and satisfaction throughout their career milestones.

Yu Shimokawa

• International Executive Recruitment Specialist for local management placements in Germany
• 15 years of experience as executive search, recruitment, and headhunting consultants in
  
  1. Tokyo, Japan for 1 year
  2. Bangkok, Thailand for 10 Years
  3. Düsseldorf, Germany for 4+ Years
• Currently based in Duisburg, Germany

Please do not hesitate to contact us if you have any questions regarding recruitment in Germany/Europe. We will be happy to provide you with the latest market trends and information based on our own recent recruitment experience.