German car production increase continues in first quarter

German car plants’ March output was up year-on-year for the 11th month in a row, Kallanish hears from national automotive industry federation VDA.

Last month, 441,900 passenger cars rolled off assembly lines, 67% more than in March 2022. However, VDA points to the extremely low level of comparison: March 2022 was the weakest March in terms of production in almost 50 years.

In January-March 2023, output amounted to 1.1 million units, 39% more than in the first quarter of 2022. The figures still remain significantly below pre-Covid levels, with 9% fewer vehicles coming out of plants than in Q1 2019.

Nevertheless, Q1 output was higher than anticipated in earlier forecasts. Recent months showed a positive trend, in particular due to the gradually improving supply situation with primary and intermediate products, VDA notes.

The association is therefore adjusting its production forecast for 2023. So far, it predicted 3.69m cars for the full year, an increase of 6% over 2022. Now, it forecasts an increase of 9% to 3.79m units. Even after adjusting the forecast, the production level will still be 21% below pre-Covid levels, with 4.66m units produced in 2019.

Christian Koehl Germany