According to official figures released on Friday, the German auto market continued to revive in July, buoyed by brisk sales of electric vehicles as supply chain issues continue to subside.
According to the KBA federal transport authority, 243,277 new automobiles were registered in total in the largest economy in Europe last month, a rise of 18.1% from a year earlier.
Although car sales have increased since the beginning of the year, they are still far below the level seen in 2019 before to the coronavirus outbreak.
According to the VDA industry organization, German automakers manufactured 300,300 automobiles in July, a 20% increase over the same period previous year. Germany is home to global industry leaders like Volkswagen and BMW.
The industry is gradually regaining from supply chain problems that had hindered consumer delivery, particularly when it comes to semiconductors.
Electric vehicle registrations, which made up 20% of all registrations in July and increased by roughly 70% year over year, were a key factor in the market’s growth.
Analysts caution that the elimination of company fleet electric vehicle subsidies starting in September will have a depressing effect.
According to EY analyst Jan Miller, “the current boom in new electric registrations is probably due in large part to the fact that commercial owners…still want to benefit from the government subsidy.”
It’s “likely to run out of steam very soon,” the expert continued.
Additionally, analysts have cautioned that the German economy, which is deteriorating due to stagnant growth, high inflation, and rising interest rates, will have an impact on the market.
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