German car sales plunge by 30 percent in July: trade data

3rd August 2010, Comments 0 comments

New car sales in Germany plunged by 30 percent last month, data from the automakers' federation FDA showed on Tuesday.

Output fell in July by five percent however as exports expanded by just six percent, the federation added.

In Germany, a total of 237,500 new vehicles were registered in July, a figure which compared unfavourably with the same month in 2009 owing to a car scrapping scheme that boosted domestic sales last year.

"Robust orders from abroad and an expected improvement in the domestic market by the end of the year will have a positive effect on the full-year 2010," VDA president Matthias Wissmann was quoted as saying however.

"We should nonetheless not underestimate economics risks such as trends on financial or raw material markets for example," he added.

In recent months, strong exports have allowed German manufacturers to ramp up production but in July, sales outside the country came in at a relatively modest 312,400 vehicles, and production slipped to 388,400 units.

The slowdown has been seen across Europe, with new car sales off in July by 26 percent in Italy, 24 percent in Spain and 13 percent in France.

German automakers have nonetheless managed to unveil very strong results in recent days, mainly owing to soaring demand in China.

© 2010 AFP

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