German domestic car sales contracted in August compared with the same month in 2011, figures released Tuesday showed, leaving exports as the industry's major growth area, dpa reported. The German Automobile Industry Association (VDA) said passenger vehicle sales fell by 5 per cent to about 226,500 last month as the economic uncertainty unleashed by the debt crisis hit Europe's biggest auto market. Sales were down 0.6 per cent at 2.1 million in the months from January to August when compared with the same period last year, the VDA said. "The challenges will become more difficult," VDA President Matthias Wissman said on releasing the figures. At the same time, exports rose 1 per cent in August to 284,400 vehicles, VDA said. Three of every four vehicles manufactured in Germany is exported, the association said. "The motor of growth is currently in markets outside of Europe," said Wissmann, with German carmakers enjoying strong demand in the United States, Brazil, Russia, China and South Korea. But Wismann warned that markets in nations at the centre of the debt crisis such as Greece, Spain, Portugal and Italy would "remain even more difficult."
