Autonomous driving offers eastern Germany a path out of structural decline, but framework conditions lag behind US and China

The next transformation

German carmakers are still reeling from the shift to electric mobility. The Volkswagen plant in Zwickau, a flagship of the transition, is under pressure. Now the industry faces a second upheaval: autonomous driving. Politicians, scientists, and companies in Saxony and Saxony-Anhalt hope that self-driving technology will not only cushion structural change but generate new value creation. The technology is not entirely new: in Hamburg, selected passengers already ride in self-driving minibuses, and projects are underway in Berlin, Hesse, and Bavaria. Saxony, too, has been developing relevant technologies for years and aims to bring autonomous vehicles into regular public transport service by 2030. In spring 2026, 19 partners from business, science, municipalities, and politics signed a joint declaration of intent to support this goal.

Saxony's technological base

Saxony's state government is betting on more than classical vehicle manufacturing. It sees autonomous driving as a convergence of automotive engineering, semiconductors, software, and research, linking robotics, artificial intelligence, sensor technology, and data management into a new key technology. The region hosts Europe's largest microelectronics cluster, Silicon Saxony, and a dense network of universities and research institutes. The Ministry of Economic Affairs points to strong capacities in software development, system validation, and digital services that could complement traditional vehicle production. Pilot projects are multiplying: at the Technical University of Dresden's Smart Mobility Lab in Schwarzkollm, a test hall for autonomous systems is being built. In Leipzig, the SIAS-ÖV project is preparing the ground for driverless shuttle buses. The state also supports municipalities and transport companies with feasibility studies.

Saxony-Anhalt's model region

Saxony-Anhalt, too, is positioning itself around autonomous driving. The state's Ministry of Economic Affairs announced that Saxony-Anhalt should become a model region for autonomous driving in public transport by 2030. Opportunities are seen for automotive suppliers as well as mechanical engineering, chemical, and electronics companies. The Institute for Competence in AutoMobility (IKAM) in Magdeburg is tasked with helping small and medium-sized enterprises through the transition. The new industry association SAHREG Automotive, however, cautions that short-term large-scale economic effects are unlikely.

At the moment we in Saxony-Anhalt are in the research phase with regional pilot projects, for example in Magdeburg and Stolberg.

Medium to long term, he sees opportunities in sensor technology, camera technology, software, and testing services. In Magdeburg, the "Elbi" shuttle bus has already been tested. Now, the research project "IMIQ – Intelligent Mobility in the Quarter" is working on a next-generation autonomous bus with up to 20 seats and a speed of up to 50 km/h.

Competitive pressure and the call for action

Despite the strengths, industry voices warn that Germany is falling behind. The Association of German Transport Companies (VDV) sees the country under pressure.

In autonomous driving, there is great dynamism worldwide, especially from countries like the USA and China.

VDV President Ingo Wortmann demands a national strategy, more investment, and better framework conditions. Karsten Schulze, CEO of Chemnitz-based technology company FDTech, highlights the unique density of specialized companies around Chemnitz that cover the entire value chain from algorithm development to sensors to functional safety. Yet, he says, that advantage is eroding.

We are still competitive with all our strengths - but no longer pioneers because framework conditions elsewhere are significantly more advantageous.

Schulze insists that the political and social framework must now be set so that the technology is deployed in Germany. "Otherwise we end up as mere integrators of foreign technology instead of being technology developers ourselves," he said.