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Car Sales Sprung 20% in Germany during April 2008
Jul 01, 2008

Car sales in Germany during April 2008 grew at an annual growth rate of 20% due to the launch of eco-friendly cars and improvement in job market.

According to the German Association of the Automotive Industry (VDA), the new car sales in April 2008 surged to the highest annual growth rate of 20% since 1999, as reported by
CALGARY HERALD.

VDA also revealed that the new car registration touched 318,000 mark in April 2008 against 265,000 in April 2007. Moreover, the vehicle sales during last four months surged by 7% to touch 1.05 Million figures. High growth in the sale of private vehicles with 70,000 registrations compensated the last year’s drop of 100,000 vehicles.

Rise in vehicle sales in Germany during April 2008 was a cumulative effect of improving job market, recuperating consumer interest, and the launch of environment friendly models. They spurred the sale of passenger cars in the domestic market. Moreover, eco-friendly cars wiped away fears of rising fuel prices from minds of consumers and its direct impact fell on the vehicle sales.

Apparently, the improvement in job market increased spending power of consumers who have enough money to purchase cars. Hence, the sale of cars significantly increased in April 2008.

Also, the sale figures in April 2008 were an upturn in figures of March 2008 when majority of automakers saw fall in the new car registrations. Sales rise was also attributed to early Easter holidays. Moreover, in April 2008 there were three extra working days as compared to the corresponding month last year. These three days also pushed up sale during April 2008 in the country.

However, rising inflation, appreciation in the Euro and spiraling oil prices are some of the tough challenges before automakers in Germany as they could suck sales by eroding consumers’ income and weakening private consumption. Further, the effect of the global credit crunch and economic slowdown could hamper the sales in future.

According to a research analyst at
RNCOS, “The sale of cars spurred in Germany during April 2008 due to recovering of consumer confidence and introduction of low cost eco-friendly cars. But rising inflation and fuel prices could slow down the car sales in future. Hence, carmakers should manufacture cost-effective models to reduce the burden on consumer pocket.”

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