Germany is doing well in exports and production, but falters in car sales image

While new car sales in June in Europe’s biggest auto market fell 2%, the industry body revised upwards its forecast for the total production and exports from the country in 2014.

According to the VDA association, the German auto industry body, the forecast for local auto production and exports has been revised positively from 2% for both sectors, as so far the six months figures have exceeded expectations. The new figures are now of a 4% growth for all domestic output from German makers and of a 5% increase in the industry’s exports.

“The ongoing improvement across Europe is a boon to our export business,” VDA chief Matthias Wissmann said at a press conference in Berlin.

“Germany’s auto-market recovery remains intact,” said Hanover-based NordLB analyst Frank Schwope. “The holiday factor weighed on June results.”

June – which lost a sales day compared to last year’s same period because of the Pentecost and Corpus Christi holidays – saw registrations in the country dip 2% to 277,600 units, compared to a 5% growth in May. The sales decrease is the second this year, but six-month figures put sales on a positive trend – up 2% at 1.54 million autos. The VDA also forecasts full year sales would exceed those registered in 2013 – 2.95 million – by reaching more than 3 million units.

Via Reuters