Yahoo Finance German new car sales soar in January
German new car sales jumped by more than 10 percent in January, official data showed Thursday, in a robust start to the new year for the largest industry in Europe's top economy.
The KBA transport authority said 241,399 new vehicles hit the road in January, up 10.5 percent on the same month a year earlier.
The increase comes after carmakers already sold more vehicles in Germany last year than in any other year since 2009, driven by strong consumer demand at a time of low unemployment and high wages.
A total of 3.4 million new cars were registered in 2016, with German automakers accounting for most of the vehicles sold.
The KBA did not give a reason for the January uptick, but analysts said it was mainly down to calendar effects with this year's January counting two extra working days.
"Adjusted for these calendar effects, new registrations in Germany remained at last year's level," said Ernst & Young partner Peter Fuss.
Market leader Volkswagen held on to its crown in January, retaining more than 20 percent of the German market with its own-brand cars, the KBA data showed, as customers continue to shrug off the group's 'dieselgate' emissions cheating scandal.
The German group's luxury brands Audi and Porsche faced stiff competition however from rivals Mercedes and BMW, who saw double-digit sales increases.
The most popular foreign-owned car brands were US automaker Ford and General Motors subsidiary Opel, with a market share of some seven percent each.
EY's Fuss predicted the German car sector would lose some momentum in 2017 after last year's strong performance, warning that rising inflation and political challenges could sap demand.
"The German car market is unlikely to make any big leaps this year," the analyst said.
"The level of sales is already comparatively high in Germany, while inflation and petrol prices are on the rise, leaving consumers with less financial leeway.
"On top of that, heightened political uncertainties within Europe and with the United States could lead to more cautious purchasing decisions," he said.
