New car sales in Germany have been disappointing so far this year, Reuters reported, citing Opel’s head of sales in the country.

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The VDA has forecast the market will be very slightly up on the 3.34m units registered in 2005, but demand for high ticket items is weak as unemployment remains high. More than five million people were out of work in January.


A positive boost to the market may come from customers seeking to buy a new car before the value-added tax (VAT) rate is increased, Reuters noted.


The German government is planning to raise VAT from 16% to 19% from early 2007.


The VDA has not yet published figures for January 2006 registrations.

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