Germany’s car market continued to decline with September registrations down 11% on a year ago.
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According to the German automotive industry trade association, Verband der Automobilindustrie (VDA), reported by Automobilwoche, this was partly because last year’s September was particularly strong due to purchases being brought forward ahead of a new higher rate of value-added tax (VAT) imposed from the beginning of 2007. The VDA said that 266,000 passenger car sales was average for September, compared with previous years.
In the first three quarters of the year, new car registrations were down 8% year on year. The VDA said the main reason was the new VAT rate at the beginning of the year and uncertainty over planned changes to the ownership tax system to reflect CO2 emissions.
Sales by German manufacturers were slightly better than import makes. German manufacturer sales were down 7%, compared to 9% off for import brands.
According to the VDA, on a seasonally adjusted basis, new registrations in September were up 1% compared to August, and the trade association noted that, seasonally adjusted, domestic order intakes were up 4% in September. This was despite the fact that domestic order intakes in September were down 25% year on year.
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By GlobalDataThis, and the good atmosphere at the Frankfurt show, were grounds for optimism, according to the VDA.
Despite the continuing weak domestic market, export demand for German-made vehicles remained strong. 383,000 vehicles were exported from German plants, an increase of 9% compared to a year ago. September 2006 was already a strong month with German manufacturers benefiting from an increase in exports of 11% compared to September 2005. Despite the weak dollar, German manufacturers still managed to increase exports to the US by 3%.
Total production in September was on a par with a year ago, with 508,000 vehicles produced. Production in German manufacturers’ overseas plants grew 9%.
