German car sales up in October but EV demand weak

New car sales in Germany rose slightly in October for the first time in months but demand for electric vehicles fell, official data showed Tuesday, with analysts warning the overall picture was bleak.

A total of 231,992 new cars were registered in Europe's biggest auto market last month, the KBA federal transport authority said, a six-percent increase from a year earlier.

It was the first uptick since June and was driven by higher sales of commercial vehicles, which were up about 10 percent, while new private registrations were down 2.5 percent.

Sales of battery-powered electric vehicles (EVs) -- which have been falling for months following the phase-out of government subsidies last year -- dropped about five percent, however.

They accounted for about 15 percent of total new registrations, well below the 2023 average of around 18 percent.

With the economic outlook still "very gloomy", potential car buyers remain "hesitant", said analyst Constantin Gall from consultancy EY, predicting sales this year will be some 20 percent below pre-pandemic levels in 2019.

"The new car market in Germany will not pick up by the end of the year," he warned.

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Gall predicted a decline in new electric car registrations of almost 30 percent compared to last year.

But EV sales could rise next year as prices were "likely to drop significantly" as manufacturers race to meet stricter EU emissions requirements due to come into force in 2025, Gall said.

Auto manufacturers across Europe are struggling with challenges ranging from weak domestic and overseas demand, to high manufacturing costs.

The crisis is particularly acute for Germany's carmakers, due to fierce competition in China where they have invested heavily.

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