Germany: October sales soar image

Even as the pace of the struggling European recovery is still long and treacherous, the weakening domestic economy has not put off German car sales, which rose 3.7% last month.

The October increase marks the seventh monthly gain in 2014, extending the positive streak seen this year in Germany, a good indicator for the region, as the country with the largest auto market on the continent.

Germany’s Federal Motor Transport Authority (KBA) announced in a statement that domestic registrations climbed to 275,320 units in October, buoyed by rising demand for sport-utility vehicles and premium cars – putting the Chrysler Jeep and Porsche brands among the best-performing carmakers. The KBA also announced that October’s surge allowed for the 2014 increase to grow to 3%, with a total of 2.56 million autos delivered.

Peter Fuss, a senior partner and automotive specialist in Ernst & Young’s German practice cautioned that the results are “exclusively due to companies’ relatively high readiness to invest.” According to some analysts, the German market should take notice that volume has been driven by commercial sales – private acquisitions still linger even as wages have been increased and dealership continue to offer strong pricing incentives. France, the second-largest auto market in the euro zone in contrast fell by 3.8% in October, as the economic hardships have taken a toll on consumer confidence.

Via Reuters