The VDA expectes the German truck market to continue to boom, according to president Bernd Gottschalk, speaking at the opening of the IAA commercial vehicle show in Hannover yesterday.

According to dpa-AFX Gottschalk said: "Heavy truck demand is currently up around 41% on a year ago and capacity in the assembly industry is being fully utilised. High growth rates so far this year show that the market is still on an upward trend."

Passenger car demand will, however, be hit by higher taxes. German VAT goes up at the beginning of next year and insurance and fuel taxes have also increased.