German car sales fall in September
This comes as the European Union decides to impose extra tariffs on Chinese EVs
NEW car sales in Germany slid again in September despite an uptick in demand for electric vehicles (EVs), official data showed on Friday (Oct 4), in more gloomy news for Europe’s biggest auto market.
A total of 208,848 new cars were registered in Germany last month, the KBA federal transport authority said, a 7 per cent drop on the same month a year earlier.
Sales of battery-powered electric vehicles, which had been falling for months, came in at around 34,500 units, up 8.7 per cent from a year earlier.
But consultancy EY said this did not signal a turnaround for EV sales, as the rise was due to a comparison effect – sales in September 2023 had slumped after certain government subsidies ended the previous month.
EV sales have generally been on a downward trend in 2024, and are well below the pace from the previous year. Critics are blaming the phaseout of the incentives.
EY analyst Constantin Gall said the German car market faces a “problematic mix”, from a weak domestic economy to poor consumer sentiment.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
He added that there was no growth momentum at present, and that Germany was some way from a sustainable recovery.
Poor car sales reflect a worrying picture for the broader German car sector.
Volkswagen – Europe’s biggest carmaker – last month warned it could close factories in Germany for the first time in its history, as it battles to cut costs and boost its meagre profit margins.
The government hosted crisis talks with senior car industry figures last month, with Volkswagen reportedly calling for a reintroduction of EV subsidies to boost the market.
Adding to the headaches for the country’s carmakers, the European Union voted on Friday in favour of imposing hefty extra tariffs on EVs made in China, a move Germany’s auto sector fears could lead to retaliatory measures. AFP
Share with us your feedback on BT's products and services
