The German rail industry registered record sales of EUR 12.5 billion in 2014, representing a a 25% increase compared to the previous year, informed the German Railway Industry Association (VDB) during at the annual press conference in Berlin.
Domestic orders of rail vehicles and components increased by 44% to EUR 4.9 billion, while revenues from international business in this segment increased by about a quarter to EUR 4.6 billion.
The record sales growth is overshadowed by a decline in demand, considers VDB. Orders for railway equipment went down by 36% last year to EUR 9.5 billion.
“In addition, the conditions have changed in important railway markets such as Russia and China. EU sanctions against Russia triggered by the Ukrainian crisis are driving Moscow into the hands of China. China is becoming increasingly technically self-sufficient and stronger in exporting. German train manufacturers face increased international competition and these developments offers opportunities for medium-sized suppliers,” stated Martin Lange, president of the VDB.
Sales in the infrastructure segment stagnated last year reaching EUR 3 billion. In Germany, revenue declined by about 5% to EUR 1.8 billion. Domestic demand rose slightly to EUR 1.8 billion. For 2015, VDB expects an upturn in business generated by significant funding allocated for investments in new equipment for Germany’s railway network.