German Auto Industry's Business Expectation Turns Gloomier In July

Sumaira FH Published August 05, 2024 | 06:00 PM

FRANKFURT, (UrduPoint / Pakistan Point News - 5th Aug, 2024) German companies in the automotive industry have become more pessimistic about their business prospect, a survey published by a leading German think tank on Monday showed.

The indicator designed to gauge the sentiment of companies in the automotive industry fell to minus 18.3 points in July from minus 9.5 points in June, said the German economic think tank Ifo in a press release.

"The automotive industry is sliding further into crisis," says Anita Woelfl from the ifo Center for Industrial Organization and New Technologies.

Up to 43.1 percent of the surveyed companies have reported a lack of orders in July, as opposed to 29.

2 percent in April. Capacity utilization has also dropped to 77.7 percent and expectations for export slipped by 13 points to minus 16.8 points over the previous month.

"A significant improvement is probably not to be expected in the coming months," says Woelfl

However, the number of new passenger car registrations went up by 6.1 percent in June year on year. The total passenger car sales in Germany during the first half of this year increased by 5.4 percent to 1.47 million units, according to figures released by the Germany Federal Motor Vehicle Office.