Germany new-car sales up by 9% in March, improvements also seen in rest of Europe

Article by Christian A., on April 8, 2015

Sales in Germany of new cars climbed 9% in March 2015 due to an extra sales day and a strong optimism experienced by the largest economy in Europe. Sales in key markets in the region, including France and Italy, also went up last month. It appears that the gradual recovery in this region is continuing.

German motor transport authority (KBA) said last Thursday that in Germany, registrations increased to 323,039 vehicles.

Consumer morale is robust – evident in the 4.6% increase year-on-year of sales to private customers (which make up 35.8% of the market). Sales in the first quarter grew 6.4% to 757,630 units. KBA records also show that the 9% sales boost in March is the widest monthly jump in at least the last 15 months.

London-based Evercore ISI analyst Arndt Ellinghorst said that Germany has been recovering from “very low levels” and that the buyers are becoming more optimistic. He believes that this trend is felt across Europe.

Ellinghorst added that 90% of German car dealers are confident that in the next quarter, business will either improve or stay stable as the result of better used vehicle prices and stable discounts.

In March, the unemployment rate in Germany reached a record low of 6.4% while the closely monitored Ifo business climate index grew for a fifth consecutive month, doing better than consensus predictions.

According to Matthias Wissmann, president of the VDA industry association, the figures in March offer us a reason to be “optimistic” about the rest of the year. He cited reasons for vigilance, including “global crisis spots and the dramatic slump of the Russian economy” that could affect economic development in Germany and Europe."

Last month, sales grew 9.3% in France, 19% in Italy and 41% in Spain. France's CCFA raised its full-year forecast from "stable" to a 2% increase, not very far from the predictions for Europe in general.

Industry sources believe that one factor that has driven up the European recovery is the demand for replacement cars. Prior to 2014, the region experienced a sales slump for six years. During the last few years, businesses affected by the recession have put off plans to renew the car fleets.

If you liked the article, share on:

Topics: germany, sales, europe

Comments

Recommended

Nissan is commencing sales of the 2019 Nissan Altima on October 3, 2018 in the United States. As expected, the Japanese carmaker has already divulged the details and specs of...
by - November 26, 2018
Sports utility vehicles are still in heavy demand. Ford knows this very well as the American carmaker has seen sales of its SUVs surge dramatically by 28 percent in the...
by - November 26, 2018
BMW’s European customers who are looking forward to have a new range extender version of the 2019 BMW i3 (BMW i3 REx) will have to bear a bad news from...
by - November 26, 2018
Imagining the future of automotive luxury more than three decades from now seems to be a daunting task. It would be hard for a typical person imagine such future without...
by - November 21, 2018
Can a Dacia Duster be compared with a Ford Mustang? It would be difficult to do so as these vehicles compete in different categories and segments, have different price points...
by - November 20, 2018