European car sales decline accelerates
Dieselgate crisis Volkswagen staff this week.
Frankfurt am Main AFP - German car sales jumped more than 10 percent in January, official data showed Thursday, in a solid start to the new year for the largest industry in the high economy of Europe .
The transport authority KBA said new 241.399 vehicles hit the road in January, up 10 percent 5 of the same month a year earlier.
The increase comes after carmakers sold more cars in Germany last year than in any year since 2009, thanks to strong consumer demand at a time of low unemployment and high wages.
A total of 3 to 4 million new cars were registered in 2016, with German car manufacturers representative for most vehicles sold.
The KBA did not give a reason for the slight increase in January, but analysts believe that it is mainly down calendar effects with starting January this year two more days.
Adjusted for these calendar effects, new registrations in Germany have remained at last year, said Ernst Young partner Peter Fuss.
The Volkswagen market leader retained his crown in January, retaining more than 20 percent of the German market with its own brand of cars, the data showed KBA, as customers continue to ignore the emissions dieselgate group cheating scandal.
The German luxury brands Audi and Porsche group face strong competition from rivals but Mercedes and BMW, which has seen an increase in double-digit sales.
The most popular foreign car brands were US automaker Ford and General Motors subsidiary Opel, with a market share of approximately seven percent each.
Fuss EY predict the German automotive industry would lose some momentum in 2017 after a strong performance last year, warning that inflation and rising political challenges could undermine demand.
The German car market is unlikely to make big jumps this year, the analyst said.
The level of sales is already relatively high in Germany, while price inflation and gasoline are rising, leaving consumers with less financial leeway.
In addition to this, accentuated political uncertainties in Europe and the United States could lead to more careful purchasing decisions, he said.
German sales of new cars soar in January, German sales in January.