| Market Research A to Z | Company Profiles A to Z | Register | Contact Us |
| +44 (0) 203 086 8600 Call us on |
Germany Autos Report Q2 2010
Market |
Automotive and Parts |
Report Type |
Market Research |
Country |
Germany |
Published |
9 March 2010 |
Number of Pages |
61 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
Riding on the success of the scrappage scheme in the domestic market and expansion in overseas emerging markets, German carmakers seem to have left the worst of the global economic crisis behind. However, we caution that there lies yet another challenge for these carmakers in 2010 and thereafter as they will not only have to deal with the slump in vehicle demand in Germany this year, but also focus on the development of less-polluting vehicles in view of the EU emission norms for 2015. With passenger car sales peaking at growth of 23% year-on-year (y-o-y), to 3.81mn units by the end of 2009, we forecast that the German market is set for close to a 20% y-o-y fall in 2010, making it the lowest sales in the industry in the last two decades. We expect more noticeable rebound in sales from 2011 when demand of both passenger cars and commercial vehicles will begin looking up, resulting in 2.1% y-o-y growth during 2011. However, the saturated nature of the German market and the relatively high vehicle ownership levels will mean that the market will fail to attain very strong growth rates, reaching 3.71mn units by the end of 2014.
On the other hand, production, which is primarily export-oriented, suffered heavily form the slowdown in demand from its export destinations, taking 2009 output down 10% y-o-y for passenger cars and 52% y-o-y for commercial vehicles. We, however, expect this to increase a modest 2.5% y-o-y during 2010 in tandem with an expected recovery in export demand during the year. Production growth is likely to be positive thereafter on the strength of the emerging markets, yet unlikely to recover completely to 2008 levels until the end of your forecast period to 2014.
We are cautious that the emission issue will continue to create some uncertainty among both carmakers and consumers. Carmakers are likely to experiment with new vehicle technology, with the likes of Audi spending EUR5.9bn (US$8.5bn) adding eight new models to its vehicle line-up between 2009 and 2015. There is likely to be added pressure on companies to reduce costs in view of which, VW is likely to spend EUR6.6bn in upgrading manufacturing plants, quality assurance, IT and parts supply divisions. The carmaker dominates the German market with an unbeaten share of nearly 20% during 2009. Germany heads the ratings in our Q210 review, mainly based on the strength of its automotive market. The position has been achieved after Russia, the one time leader in the ratings, dropped to the sixth position, due to its slackened automotive market during the peak of global economic crisis in 2009. As a mature market with well-established brands, there is little space for new entrants in the German market. While Germany’s scores in the autos market ratings have slightly fallen compared with last year, it continues to comfortably maintain its lead in the rankings. Indeed, Germany portrays the typical nature of a developed market in that it has managed to remain relatively stronger than most other markets in the region.
Last Viewed
Germany Autos Report Q2 2010Oman Tourism Report Q4 2009
Poland Autos Report Q4 2009
Beverage Packaging - Indonesia
Aerospace & Defense in Germany
Automotive and Parts Company Profiles
Automotive and Parts Company Profiles contain up to date financial, strategic, operational, SWOT analysis and product information on the activities of thousands of automotive and parts companies.
Become an Affiliate
Do you manage an industry specific website or blog? Are you looking to monetise your web traffic further? Are you a B2B website?
Why not offer your visitors industry specific strategic market reports and company profiles? Our Affiliate Program enables you to provide quality content on your website and to earn money from passing on visitors to our website. If a sale is made from your visitor, you earn commission (a fixed percentage of the price of a product).
Custom Research
Cannot find what you need? We can tailor a report for you. Complete the Custom Research Form and we will provide a quote.
