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Production of the VW electric car ID.3 in Zwickau
Photo: Jens Büttner / picture alliance / dpa
The mood in the German auto industry is noticeably better after the slump caused by the corona crisis.
In October car manufacturers and their suppliers assessed their business situation more positively than in September, shows an economic survey by the Munich Ifo Institute.
In October the situation indicator rose to minus 0.2 points, after minus 20.4 points in the previous month.
At the lowest point in April, the index was minus 86.2 points.
"The demand for cars has increased noticeably. That has significantly improved the mood among the managers," said the head of the Ifo surveys, Klaus Wohlrabe.
According to the institute, capacity utilization in the sector rose significantly to 86 percent in October, after 73 percent in July.
Sales driven by electric and hybrid cars
The number of newly registered cars from German manufacturers had increased by five percent in September compared to the same month last year.
However, this increase is being driven by electric and hybrid cars, of which German manufacturers do not yet have that many on the market.
Despite the mood improvement in October, companies are still pessimistic about the future.
Many indicators gave way.
The index of expectations fell for the fourth month in a row, from 27.6 points in September to 17.7 points in October.
The unusually high order backlog from September could not be maintained.
The corresponding indicator fell from 51.5 to 29.2 points.
According to the Munich researchers, the companies are still planning to increase their production, but are a little more cautious than in September.
Despite the generally good situation, the car manufacturers are currently planning staff reductions.
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