New car sales in Germany drop by 1 percent in September 2013

Article by Anita Panait, on October 3, 2013

New car sales in Germany dropped only by 1 percent to 247,199 vehicles in September 2013, according to the Federal Motor Transport Authority (KBA). The decline could be an indication that the sales slump in the European vehicle market is finally slowing down, with sales in August declining by 5 percent. New car sales in the first nine months of 2013 dropped 6 percent year-on-year to 2.22 million units.

It should be noted that September 2013 has one less working day than in September 2012. The slower rate of decline in Germany, as well as rising vehicle sales in France (3 percent) and Spain (29 percent) in September, further fueled hopes that the car maker in Western Europe is on the way to a slow recovery. Volker Lange, president of the Germany's VDIK import brands association, remarked that he expected the country's vehicle market to continue to stabilize, helped by stronger consumer confidence.

In a statement, Lange said that current forecasts are citing an accelerating economy with the continued consumer willingness to spend. He expects the stabilization could continue in the fourth quarter.

VW dealership owner Ernst-Robert Nouvertne remarked to Automotive News Europe that the German market is “still very tense and life would be tough” for dealerships without generous incentives.

He added that they expect slight improvements over the rest of 2013, especially that the second half of 2012 “was so bad." September sales is considered as a good indicator underlying trends in Europe as August results are not deemed as a gauge of overall demand since many consumers are on vacation.

Topics: germany, sales

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