German new car registrations continued to shrink in October, falling by 20% after slipping almost 18% to 259,748 units in September, according to the German motor transport authority (KBA).
Car makers sold 256,775 units in Germany last month which means during the 10 months of 2010, sales are down 26.8% to 2,423,627 units. In 2009 about 3.8 million new cars were registered in Germany.
The German car industry estimates that, in total, about 2.9 million cars will be registered in the country in 2010.
A fall in demand compared with October 2009 was exacerbated by the ending of last year’s government sponsored scrappage scheme (Umweltprämie), which had boosted car sales in Germany for much of 2009.
Germany’s 5 billion euro pot of tax money to subsidize new-car purchases was exhausted at the beginning of September 2009, ushering in months of extremely weak demand as thousands of purchases planned for this year were pulled forward to take advantage of the scheme.