According to Germany’s auto importers association VDIK, the new-car market in Germany has stepped down by over a quarter in August alone. It is important to note that Europe’s largest sports car market is none other than Germany. Experts and industry analysts believe that the new car market in Germany dropped by over 27%. In absolute figures in August, there were only 201,000 new-car registrations. Experts compare it with the last year’s data for the same period.
There was a drop in new car registrations, from January to August 2010 by over 9.6 percent or over 1.9 million vehicles in comparison to the same period in 2008. In year 2008, the market was not boosted because of a scrapping scheme. The scheme was dubbed as “Cash for Clunkers.” The agency who manages the “Cash for Clunkers” program has reportedly said that one year ago, the 5 billion Euros, which equate to $6.40 billion allocated by the German government, had been exhausted. This resulted in inflated market which in turn led to new car registration amounting to 3.81 million vehicles. The figure for the new car registration was last recorded in year 1992.
The car sales in US on last Wednesday were recorded to be the weakest ever since 1983. However, contrary to this trend, sales figure in China stepped up by over 59 percent. Car sales in Western Europe also registered a decline. The reason for this decline is reportedly caused by the end of government incentives in some of the European countries.