German passenger-car registrations up 5% in May 2014

Article by Christian A., on June 4, 2014

Passenger-car registrations in Germany surged 5 percent to 274,804 in May, providing a glimmer of hope that the auto industry is still recovering in the country. Other European markets like France and Spain also logged higher year-on-year car sales in May. In the first five months of 2014, German registrations rose 3 percent to 1.26 million units.

Local brands like Porsche and Opel posted growths of 11 percent and 9 percent, respectively, helping boost registration figures in the country, according to the Federal Motor Transport Authority (KBA).

On the other hand, luxury brands Mercedes-Benz and BMW logged drops of 0.5 percent and 5 percent, respectively, in German registrations, as they review the cost structure of their German business and stopped short of heavy discounting. Volkswagen-brand saw its sales in May jump 2 percent.

While there are indications that the Europe auto market is recovering, excessive capacity and steep discounting distort the real level of demand. Mike Tyndall, an autos analyst at Barclays, remarked that incentives went up in Germany while the most generous ones are being offered by Peugeot, Citroen and Opel.

Average incentives for Peugeot and Citroen were at 24 percent and for Opel was 25 percent, according to Tyndall. He noted that sales growth in Germany was inflated by the fact that registrations in the same period in 2013 were particularly weak.

In France, vehicle sales surged 3 percent to 740,121 in the first five months of 2014, prompting the country’s CCFA industry association to mull raising its 1-percent growth full-year forecast in June.

Sales in Spain, meanwhile, jumped 16 percent in the five-month period, still helped by a government subsidy scheme that provides a rebate to new buyers for turning in their old cars. [source: automotive news - sub. required]

Topics: germany, sales

If you liked the article, share on:

Comments

Recommended

You probably heard about Ford’s CEO Mark Fields’ departure from the company. Fields has spent almost three years with the company, and now, he is going to be replaced by...
by - May 28, 2017
A racing team is claiming that it has managed to break the lap record in its category in the ever-demanding Nurburgring circuit in 2016 while driving a road-going Volvo S60...
by - May 27, 2017
Aside from the officially confirmed BMW 8 Series, the next generation BMW M5 (F90) is getting a lot of attention from the fans, enthusiasts and even potential customers around the...
by - May 27, 2017
Automobili Lamborghini’s preparations for the production of its first ever sports utility vehicle, the new Lamborghini Urus, has reached new grounds as the Italian carmaker is disclosing plans to construct...
by - May 26, 2017
The upscale version of the GMC Yukon body-on-frame sport utility vehicle – the GMC Yukon Denali – has been refreshed for the 2018 model year. It now sports a new...
by - May 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries