European sales worst in decades

EUROPEAN new car sales continue to slide as the effects of the COVID-19 pandemic and related production constraints, record inflation and energy prices, the Ukraine conflict, unprecedented raw material costs, and the ongoing microprocessor shortage wreak havoc on the industry.

Automotive News Europe (ANE) reports that Europe has faced its worst June sales month since 1996 with new passenger car sales down 17.0 per cent to 1.07 million units.

Volkswagen Group was the hardest-hit major producer with registrations dropping 24.0 per cent from a year ago according to data published by European industry association ACEA (l’Association des Constructeurs Européens d’Automobiles).

Sales of Stellantis Group –the region’s number-two producer – fell 17.0 per cent and Hyundai Group (comprising Hyundai and Kia models) 3.9 per cent. Renault Group’s Alpine and Dacia brands fell 40.0 and 32.0 per cent respectively.

“In June 2022, (new) passenger car registrations continued their downward trend in the European Union, down 15.4 per cent, as supply chain issues continue to limit vehicle output,” said the ACEA in a statement.

“With 886,510 units registered, this is the lowest month of June on record in terms of volume since 1996. All four major EU markets contributed to the fall.

“Germany posted the strongest decline (-18.1%), followed by Italy (-15.0%) and France (-14.2%). Spain on the other hand saw a more modest decline (-7.8%).

“Over the first half of 2022, new car registrations in the EU shrank by 14.0 per cent compared to one year earlier, totalling around 4.6 million units. All of the region’s major markets recorded double-digit drops [see full list below].”

According to European-based industry analytics firm LMC Automotive, the increase in new vehicle prices because of the factors listed above will not be overcome anytime soon, with European new car sales expected to remain suppressed for at least another 12 months.

“The industry will not overcome supply constraints anytime soon. Another concern relates to underlying demand, which has been weakened in recent months as the economic outlook has deteriorated,” LMC Automotive said in its July update.

New car sales in Europe have declined steadily over the past year with LMC Automotive now estimating Western European passenger car deliveries will drop by 6.3 per cent this year to 9.92 million units. To the end of June (2022), European new car sales fell 14.0 per cent overall to 5.6 million units.

As reported by GoAuto earlier this month, Australian new car sales are down 5.2 per cent to the end of June with new-vehicle sales decreasing by 9.7 per cent compared to the same month in 2021.

European H1 sales for 2022 (by country):