German car sales rise again in April

Sales of new cars in Germany continued their recovery in April, official figures showed Thursday, adding to signs that the industry was shaking off troublesome supply chain issues.

A total of 202,947 new cars were registered in Europe's largest economy last month, up 12.6 percent on a year earlier, according to the KBA federal transport authority.

The strong rise followed a similar 16.6 percent improvement in March and a more modest 2.8 percent increase in February.

"After a restrained start to the year we are now seeing a sustained upswing," said EY analyst Peter Fuss.

A shortage of semiconductors that had slowed production is easing, Fuss said, with manufacturers now cranking out more new cars to work through their order backlog.

But weak economic growth and high inflation in Germany could contribute to a "reluctance to buy" among new customers, Fuss said.

"Sooner or later this will slow down the current upwards trend."

Sales of all-electric vehicles rose by 34.1 percent with 29,740 units sold.

That figure remained well below the 100,000 battery vehicles sold in December as customers raced to take advantage of government subsidies before they expired.

Demand for plug-in hybrids meanwhile plunged by 45.7 percent, with 11,787 new cars registered, as customers increasingly turned their back on the models.

Germany's electric car market remains reliant on discounts and government support to drive sales, Fuss noted.

"The electric car market must increasingly stand on its own two feet," he said, warning that major leaps in sales could take time to materialise.