Germany has enjoyed a marked increase in new car registrations for 2005, despite negative signs in some European countries.

The German Association of the Automotive Industry (VDA) anticipates meeting its 2005 prediction of 3.3 million units, which compares favourably with 2004 figures of 3.27 million.

This increase continues a trend started in 2004 when the industry recorded growth for the first time in five years in Europe's largest automotive market.

VDA president Bernd Gottschalk expects the trend to continue into 2006, with 3.35 million units predicted.

"We expect in 2006 and indeed in the fourth quarter [of 2005] a pull-forward effect that could certainly range in the area of 50,000 to 80,000 new car registrations," he said.

Germany's November records are in contrast to that of her European neighbours, many of whom saw a reduction in new registrations, including France and Spain.

The also contrast with the performance of the rest of the German economy, which is experiencing high unemployment, high fuel prices and low economic growth.

However, some analysts are predicting a slow down in registrations in 2007 when VAT increases of 19 per cent come into effect. Indeed it has been suggested that this anticipated decline is what is behind the current growth, with consumers in a hurry to buy before 2007.


Ÿ Adfero Ltd