Frankfurt, Germany March 3-Sales of cars in Germany were up again in February, official figures published Thursday showed, but the outlook for the industry was clouded by production disruptions due to the conflict in Ukraine.
Around 200,000 new cars were registered in Germany in February, 3.2 percent more than in the same month last year, according to the federal transport agency KBA.
The new figure continued the positive start to the year for the car market after a similar 8.5 percent rise in January, but the industry faces renewed challenges.
The comparative increase was attributable to weak sales figures last year, Peter Fuss, a partner at EY said.
“A quick market recovery in light of the recent geopolitical escalation has become even less likely,” Fuss said, warning of delivery delays and price increases.
The conflict in Ukraine has caused disruptions for German car manufacturers at home and abroad.
The three top car makers in Germany, Volkswagen, BMW and Mercedes-Benz, have all stopped production in and exports to Russia as a result of the invasion.
Suppliers based in Ukraine have also seen their production interrupted or been forced to close as the Russian army advances, with knock-on effects for plants in Germany.
Volkswagen, the largest German car manufacturer, will close its main factory in Wolfsburg for a week in mid-March, and has adjusted production schedules at other factory locations in Germany and Poland.
The prospect of more challenges ahead will come as a blow to the industry, which suffered a difficult 2021 as a result of coronavirus-related restrictions and bottlenecks.
An acute lack of semiconductors, a key component in conventional and electric vehicles, contributed particularly to sales in Germany falling by over 10 percent in 2021.
Electric vehicles outpaced the rest of the market, with sales up 54.9 percent in February compared with last year.
