"The auto market surprised everyone in 2021. Unfortunately, not in a positive sense," said the director of the federation of car importers (VDIK), Reinhard Zirpel, in a statement.
Auto sales in the auto nation suffered a major decline in 2020, dropping 19 percent and hitting their lowest point since German reunification in 1990, as the coronavirus ravaged large parts of the country's economy.
The impact of the health restrictions will be felt until 2021, especially the disruptions caused by the world's supply chains have a very big impact on the automotive industry, which is Germany's mainstay.
A shortage of semiconductors, a critical component of both conventional and electric vehicles, is forcing production to slow down and means the industry is forced to "go at a slow pace", Zirpel said.