Cars in Germany are now oldest they have been as consumers continue to shy away from making new car purchases due to the current economic crisis in Europe. According to Germany's auto industry association, VDA, cars in the country are 8.7 years old on average, which is a full year older than the pre-crisis level in 2007. New car registrations in Germany dropped 5 percent in June 2013, the fifth decline this year, according to released by Germany's motor vehicle office, KBA.
New car registrations in the country dropped 8 percent in the first half of 2013 to 1.5 million vehicles. VDA President Matthias Wissmann said during a press conference in Berlin that Germany "naturally can't decouple itself from the crisis-laden environment" in Europe.
He remarked that there is an evident insecurity due to the ongoing euro crisis. The VDA affirmed its full-year sales forecast of between 2.9 million and 3 million vehicles in Germany.
The association said demand for new vehicles would stay at around 3 million units in the next few years in Germany. The VDA said sales drops in the second half of 2013 will gradually decrease with a recovery in the region to occur eventually.
Wissman remarked that around 3 million people in western Europe who aren't buying cars now, did not shift to public transportation or car-sharing offers during the crisis. He said that although people have desire to buy new cars, it is being delayed due to the current economic situation. Germany is biggest car market in Europe. [source: Bloomberg]