German passenger-car registrations up 5% in May 2014

Article by Christian Andrei, 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

Login or Create new account to add a comment!

Recommended

Did you miss the opportunity to get a brand new Dodge Viper? Well, here’s something you don’t want to miss. Dodge has announced a “final call” for orders for its...
by - December 6, 2016
Acura fans and customers rejoice! Sales have begun for the flagship model of Acura’s RLX top-of-the-range sedan – the 2017 Acura RLX Sport Hybrid. Described by Acura as its most...
by - December 6, 2016
Autonomous cars are slowly but surely gaining more appeal among drivers around the world. While a complete self-driving system has yet to be launched, carmakers have been finding ways to...
by - December 6, 2016
BMW has officially ended the production cycle for what is considered as its meanest and fastest sports car – the BMW M4 GTS. Basically a power-up evolution of the BMW...
by - December 6, 2016
Now that Lamborghini is set to bring a “more aggressive” Aventador, it only makes sense that it will be given a name. Seeing how it goes, perhaps we won’t be...
by - December 6, 2016
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