German Auto Sales Down 4.7% in June image

New car registrations in the German market continued to drop in June to almost 300,000 units.

According to the Federal Motor Transport Authority new vehicle registrations in Germany dropped 4.7% in June, to 300,000 units. During the first six months of the year sales fell 8.1% to 1.5 million units compared with the same period last year. One of the most affected German automakers was Opel which dropped 11% from January to June, followed by VW down 9% and BMW down 7.1%.

Although auto industry in Europe continues to be affected by the debt crisis, high unemployment and record-low demand, top German car makers were able to offset these loses by focusing on overseas markets. Analysts predict that Germany will see a turnaround in its auto industry in the following months.

“Both private and corporate purchases should pick up because of a potential modernization backlog,” said Matthias Wissmann from the industry’s lobby association VDA.

In May passenger car registrations in Germany fell 9.9% to 261,316 units, after an increase of 3.8% in April. The brand which saw the steepest decline was Opel, down 16%, while VW fell 10%, Fiat 11% and Ford 1%.

Source: dw.de