By Reino Gevers, DPA
Frankfurt : Foreign car importers serve mainly a niche segment in the German car market. Japanese and French manufacturers are placing high hopes on the Frankfurt Motor Show (IAA) this month with a trend toward smaller and more economical cars.
Importers have been battling to increase their market share of Europe’s largest car market. Domestic new car registrations have been lacklustre with German manufacturers relying mainly on the booming export market.
In the first seven months of 2007, German car producers sold 8 percent fewer vehicles over the same period last year despite a booming economy but the foreign manufacturers have managed to increase their market share from 35.6 to 36.4 percent – better than in their best year in 2003, according to the German vehicle import association (VDIK).
Toyota and Honda together hold 12 percent of the market, benefiting from a trend toward smaller and more economical diesel cars. The French producers Peugeot, Renault and Citroen, which have a tradition of building small economical cars, are the second-largest importers on the German market followed by the Czech manufacturer Skoda, which is owned by Volkswagen.
Overall, new car registrations in Germany are expected to fall by 0.6 percent to 3.38 million units this year after initial estimates of 3.4 million.
VDIK president Volker Lange attributes the downturn to uncertainty among consumers amid a lengthy political debate on how cars will be taxed in future. Some politicians are demanding taxation linked to a vehicle’s carbon dioxide emission. But German politicians fear that this will impact negatively on German carmakers, the largest manufacturers of luxury premium cars.
But the European Commission has already announced legislation forcing carmakers to reduce carbon dioxide emissions from an average of 160g/km at present to less than 120 g/km by 2012.
“So far there is little incentive for buyers to purchase cars with lower fuel consumption. Tax incentives are the only reasonable way,” Lange says pointing out that more than half of the cars on the German market with a C02 emission of under 140 g/km come from foreign manufacturers.
The Frankfurt Show this year will emphasize fuel economy and alternative drive-systems such as hybrids. One of the highlights of the show is Peugeot’s 308 RC Z concept car built with special lightweight materials including carbon fibre composites.
There have been reports that Toyota is planning to unveil two concept cars including a micro car and a hybrid. Volkswagen has been very mum on the drive concept of its new rear-engined mini car.
Subaru is expected to put on show a new “boxer” diesel engine and its new “supermini” Justy. Apart from that the new mini estates such as the MINI Clubman and Renault Clio will be highlighted along with the new Fiat 500.