Europe: German car sales in June rise 13 percent image

New vehicle registrations in Germany, the largest European auto market, have jumped 13 percent last month, according to the country’s VDA industry association, with the highest monthly growth this year supported by the two additional selling days and a rising economy.

Passenger car deliveries in Germany totaled 313,600 units, taking first six month sales to a tally of 1.62 million autos, rising 5 percent from the same period last year. VDA president Matthias Wissmann commented during a news conference that sales have been supported by the increased private consumption, with the country achieving higher employment and low inflation rates. The Federal Labour Office said German unemployment dropped for the ninth month in a row, expecting consumer confidence to rise accordingly. “The German auto market is steering the course,” said the VDA official, adding the association was keeping its full-year forecast of a two percent rise to 3.1 million vehicles. “This is a rather conservative estimate because the market is recovering,” he added, hinting that over the course of the year a revision is to be expected.

The increase posted by the biggest European market is in line with other major markets across the continent – France, Spain and Italy – three of the top markets, also posted double-digit increases, showing the region’s sustainable recovery trend. “European (auto) industry margins can return to, or even exceed, pre-crisis levels as replacement demand kicks in, and labour and capital costs decline,” commented an analyst from Exane BNP Paribas. Last month’s registrations in Germany slid 7 percent because of the two fewer days compared to the same month last year.

Via Reuters