The German car market was down six percent in May to 275,000 vehicles, according to data from the German automotive industry trade association, Verband der Automobilindustrie (VDA).
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The VDA blamed the fall on uncertainty over the introduction of new carbon dioxide emission-based taxation and high fuel prices.
The Association of International Motor Vehicle Manufacturers, the VDIK, adjusted the drop to 2.8% taking into account one less working day compared with May 2007.
“The federal government has to give clear and convincing incentives for switching to cars with low emissions and fuel consumption as soon as possible,” VDIK President Volker Lange told Reuters.
Sales were weak last year after the introduction of a new higher rate of value-added tax at the beginning of the year. They had shown signs of recovering at the beginning of this year but have not yet reached pre-2007 levels.
VDA president Mathias Wissmann told Reuters that “The current price development at the pump is putting the brakes on consumer demand.” He noted that domestic orders were down nine percent last month.
Production and exports were also down last month, according to the VDA. Production was down five percent in May, and three percent in the first five months of the year. Exports were down four percent to 344,000 cars in the month, and down three percent in the first five months of the year to just below two million units.
