Damper follows after high sales: "Second wave" hits German car market

In September the German car market experienced an upswing, now the registration numbers are falling again. The uncertainties of the Corona crisis put the industry in uncertain months. Only e-mobility enjoys unabated popularity.

Car sales in Germany went into reverse gear in October. After an interim high in September, new car registrations shrank by around four percent to 274,300 units last month, as the Federal Motor Transport Authority announced. The main reason was that companies ordered significantly fewer new cars than a year ago due to the uncertain economy. Private buyers, on the other hand, seized the opportunity – also attracted by high discounts.

In November, according to the assessment of the management consultancy EY, new registrations are likely to be even weaker than in October, because public life has largely come to a standstill while fighting the pandemic. "The uncertainty also with regard to the possible economic effects of this 'second wave' is great – that should clearly dampen the willingness to invest and the mood to consume," explained EY expert Peter Fuß.

The electric boom fueled by government subsidies continued, however. Never before have so many e-cars and plug-in hybrids been sold in this country as in October. According to calculations by EY, their share of new vehicle registrations rose by almost two percentage points to 17.5 percent compared to September – a new record.

Significant losses compared to the previous year are expected

In the first ten months, according to data from the Flensburg registration authority, 2.3 million new cars hit the streets, 23 percent fewer than in the same period last year. The importers association VDIK stated that the October figures were "a decent result" against the background of the very high level of the previous year. Association President Reinhard Zirpel spoke of a "gentle recovery" with a view to the past few months.

However, given the rapidly increasing number of infections, this trend could end in the coming months. According to the Association of the Automotive Industry, production at German automobile plants fell by two percent due to weak demand, which is the 13th consecutive month. While incoming orders in Germany continued to decline, a slight increase in incoming orders was again registered from abroad.

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