• Пн. Окт 26th, 2020

In a desperate search for car buyers

Авг 22, 2020

Another weak month: the German car market continues to decline in June. According to a source familiar with current sales data, 5% fewer new cars started driving on the streets of Germany last month. «This is not a very good indicator, but the situation is not as bad as in previous months,» the expert added.

Already in may, hopes for a speedy recovery of Europe’s largest car market collapsed. According to the Federal statistical office in Germany, sales in may fell by 9.9 percent to 261,316 vehicles. Only in April, the number of vehicles registered a slight increase, but this was also due to the fact that there were several more working days in the month.

The German Association of automobile manufacturers (VDA) will announce demand for new cars within a few hours. According to the latest underestimated estimates, it is expected that between 2.9 and 3 million cars will be sold this year. So far, the Automobile Association has assumed that more than 3 million cars will find new buyers this year, after almost 3.1 million cars were sold in 2012.

Official data on registered cars was also published by the Federal automobile service in Flensburg. According to her, June ended with 282,913 new registrations, which is 4.7% lower than in may 2013. Only in the first six months of this year, there was an increase in April — 3.8% more registrations compared to the previous year. The share of business acquisitions in the first half of the year was 61.7% — 7.4% lower than in 2012, and the share of private registrations decreased by 9%.

VW, with a market share of 21.6%, is the best-selling brand of new cars in Germany for the first six months.

However, some brands are sending positive signals. The only German brand that registered growth is Porsche — 3%. In imported brands, double-digit growth rates were recorded by Jaguar (35%), Seat (30.4%) and Land Rover (21.1%). For the first six months, VW, with 21.6% of the market, has the highest share of new registrations. Skoda remains the best-selling foreign brand in Germany with a 5.1% share.

Demand in Western Europe has declined. In crisis-hit Italy, the number of registrations fell by 5.5% in June, while in France, the drop was almost 9%. However, there is hope that the bottom will soon be reached. Experts explain this by the fact that the recent decline is slower than in previous months.

However, while demand for Europe is growing again, this is likely to take some time. Business consultants note that many Europeans are putting off buying a new car due to the debt crisis, but will return to car dealers after a while. However, it is not clear when this will happen. The average age of cars on German roads is 8.7 years. In addition, the economic situation in European countries continues to be weak, and the unemployment rate is high.

2012 was the weakest year since 1995 for the European market: 12 million cars were sold. In 2013, experts expect the sixth annual decline in Western Europe. Continuing delays in registration have created difficulties for major manufacturers such as Peugeot, Fiat and Opel. On the other hand, premium car manufacturers such as BMW, Audi and Daimler, with their Mercedes-Benz subsidiary, are compensating for the weakness of the Old continent by exporting to North America and China.

Data for car sales in the U.S. expected in the second half of the day. Experts believe that the growth trend in recent months will continue.

According to the German Association of importers VDIK, its market share of 35.5% corresponds to last year’s level. In June 2013, there was a decrease of 4.6% compared to the same month last year to 283,000 registrations of imported car brands.

VDIK has a tendency to reduce interest in diesel cars. New registrations of diesel vehicles reported a significantly higher decline in the first half of 2013 than the average decline. Compared to the first half of 2012, the decline was 9%, with 710,000 new diesel vehicles sold. Their share of total sales falls to 47 percent.