Blog: Dave LeggettGerman car market - cautious optimism

Dave Leggett | 9 October 2003

The German new car market picked up last month on the back of the new models launched at the Frankfurt Motor Show. That's good news. New models like the VW Golf and Opel Astra should help to propel the market for a few months yet. There are also good deals around, low interest rates and - it would seem - some pent-up demand. The average age of a car on German roads has risen to a historically high seven years. That suggests a decent reservoir of replacement demand to come through over the next few years. I wouldn't look for a very strong market bounce-back though. It will be tempered by Germany's still weak economy and battered consumer confidence. Also, the European Central Bank may raise interest rates in 2004 as Europe's economic growth rate picks up.


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