A mood of quiet optimism seems to be returning to the German luxury car business. BMW reported a small 0.7 per cent increase in September sales compared with the same month last year. While sales at Mercedes-Benz and Audi were lower during the period, the decline was far less pronounced than it has been over recent months.

For the German premium carmakers this is a clear sign that the worst may be over and that sales should start growing again. Sales in emerging markets, especially China, are already buoyant, so much so that China could soon overtake Germany as Audi’s single largest market.