German new car registrations fell 2% in February, extending January’s decline that came on the heels of a strong sales spurt at the end of 2004, German auto industry association VDA told Reuters on Friday.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more


Registrations in Europe’s biggest car market by far slipped to 219,000 vehicles last month, according to preliminary estimates – that brought the cumulative fall in the first two months of the year to 3%, the report added.


“A difficult start to the year 2005 is emerging in the first quarter,” VDA said, according to the news agency, which noted that, in January, the German car market registered its lowest amount of new cars for that month since German reunification.


The VDA, which forecasts a sales dip this year to around 3.25 million cars, reportedly said once more that the weak domestic economy and record post-war unemployment continued to frighten car buyers away from dealer showrooms.


“Several negative factors – such as worries about jobs given unemployment far above five million people, sharply higher oil prices or the uncertain economic situation that makes consumers uncertain – have led to a stuttering auto market,” the association told Reuters, though it held out hope that new models and growing replacement demand would boost the market as the year went on.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“Exploding steel prices, higher plastic prices, stagnant markets, pricing pressure, oil, the dollar … we’ve seldom had such a stressful situation,” VDA president Bernd Gottschalk told Reuters at the Geneva motor show this week, adding 2005 would be no cake walk for car makers.