German automotive industry’s business expectations rise again: ifo

Xinhua News Agency | Jul 2, 2020 at 4:52 PM

BERLIN, July 2 (Xinhua) -- Business expectations of the German automotive industry rose again, with the corresponding index increasing strongly from minus 11.9 points in May to 27.7 points in June, the German ifo Institute announced Thursday.

"Business expectations have taken a clear positive turn for the first time in seven months," ifo announced. Germany's automotive industry is hoping for a "slow recovery" in the coming months.

German carmakers saw a sharp rise in demand as the index jumped from minus 80.6 points in May -- when new car registrations in the country were down 50 percent year-on-year due to COVID-19 -- to 52.2 points in June, according to ifo.

Although production expectations also increased for the second month in a row, German car exports were recovering only cautiously. The index for export expectations, however, turned positive for the first time in almost two years.

"German car manufacturers and suppliers and also employees in the automotive industry benefit considerably from China," Ferdinand Dudenhoeffer, director of the German Center for Automotive Research (CAR), told Xinhua.

China already accounted for almost 40 percent of the worldwide turnover of the German automotive industry and would continue to gain "considerable importance for the German automotive industry in the coming years," added Dudenhoeffer.