Although the crisis begins to affect the German auto market, the country still managed to reach an increase of 1.0% in new auto sales in October.
Last month Germany sold 259,600 new cars, an increase of 1.0% compared with the same period last year. From January to October auto sales dropped 2% to 2.618 million vehicles.
“As much as we are pleased to see the slight increase in October, we must not overestimate it,” said VDA president Matthias Wissmann. “Private customers in particular remain unsettled by Europe’s ongoing debt crisis.”
Last month exports of German-manufactured cars dropped 6.0% to 446,100 units and 3.0% to 4.557 million in the January-October period. In September auto sales in Germany fell 11%, affecting Ford, Opel and VW. The most hardly hit was GM’s unit Opel, which saw sales down 26%, while Ford’s sales decreased 22.5% and Volkswagen’s 20%. On the other hand, low-cost brands did well, with Hyundai up 19%, Kia up 15% and VW’s Skoda up 11%.
“We’ll probably see a continued weakness in southern Europe and in addition to that an accelerated weakness in France and Germany,” said Arndt Ellinghorst, a London-based analyst at Credit Suisse Group AG.