The German car market was up 10.5% in January, the first positive result in 12 months.
220,742 new cars were registered in Germany in January, according to data from the Kraftfahrt-Bundesamt (KBA).
Much of the increase in January was because the comparative market was incredibly weak in January 2007, as customers brought purchases forward into 2006 ahead of the introduction of a new higher rate of value-added tax (VAT).
The head of German vehicle manufacturers’ association Verband der Automobilindustries (VDA), Matthias Wissmann, told dpa-AFX that the results for the last four months suggest the market is starting to stabilise and that there is a good chance sales will be up on last year’s low level.
However, he added that this would only happen if political conditions improve. He was referring to the current debate in Germany over the introduction of a new annual CO2-related tax, but uncertainty over that, and the recent introduction of new low emission zones in city centres, is making consumers nervous about buying new cars.
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By GlobalDataThey want clarity so that they can make purchase decisions in the full knowledge of exactly what it is going to cost them in tax.
Manufacturer performances vary
Volkswagen was one of the major winners in the January market, with sales up almost 26% in January, to 44,702 units. This meant its share rose from 17.8% a year ago to 20.3% this year. Audi and Seat also recorded strong growth, with sales up 13.5% and 27.0% respectively. Skoda sales were up 1.2%.
But big losses were posted at Opel and Ford. the GM brand’s sales were down 12.4% and the blue oval was down 12.6%.