New Report Available: Germany Autos Report Q4 2013

BMI maintains a bearish outlook on the German autos market, on the back of declines in both the domestic and European markets. Although we are less bearish on passenger car sales growth over the year, we still expect the segment to remain in contractionary territory. This weak domestic market, combined with ongoing declines in Germany's primary export markets, has informed our bearish production outlook. BMI forecasts a decrease of 6% in passenger car sales over the year. We maintain a bearish outlook for consumer sentiment in the country. Indeed, BMI expects the ongoing deterioration in the German labour market, combined with weakness in the euro, to cause private consumption in the country to remain subdued in 2013. We believe that this will serve to moderate passenger car sales growth somewhat, and has informed our sales forecast.

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A number of auto companies continue to offer large discounts and offers to potential consumers. This served to buoy sales in 2012 somewhat (moderating the decline, certainly), and is expected to have a similar effect in 2013. Such practices are prevalent across a number of European countries as car makers attempt to boost sales.

BMI forecasts ongoing declines in vehicle output over the year on the back of weak domestic demand and exports, combined with our generally bearish view on manufacturing in the country.

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