German car sales were roughly flat at 3.24 million vehicles last year, according to the motor industry association VDA which warned there were no signs yet of a sustainable upturn, according to Reuters.
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“After three years of declining new car registrations in Germany, the year 2003 brought consolidation in the domestic market, albeit at an unsatisfactory level,” the group reportedly said in a statement.
Reuters said the German car industry, which employs one in five people and accounts for around a tenth of industrial output, was again plagued by weak demand at home last year, with manufacturers having to rely increasingly on exports to prop up sales.
The report added that the German economy contracted in the first two quarters of 2003, and although it grew slightly in the third quarter, the country suffered its biggest annual drop in employment since its last full recession in 1993 – and most analysts do not expect any turnaround on the labour market until mid-2004.
Reuters noted that German manufacturers have been launching an unprecedented number of new models, which they hope will entice consumers back into showrooms, and most experts expect a moderate revival in domestic demand this year.
According to the news agency, VDA president Bernd Gottschalk has said he expects new registrations to rise by around three percent to 3.35 million in 2004, tallying with forecasts from many industry executives.
The VDA, which had forecast Germany’s new car registrations at 3.25 million for 2003, said registrations in December rose by about 1% to 231,000 vehicles but cautioned that the market still lacked any sign of a sustainable upward trend, Reuters said.
