Daily Management Review

Car Sale In Europe Drops 8% In June


07/17/2019




Car Sale In Europe Drops 8% In June
There was a significant 7.9 per cent drop in the sale of new cars in Europe in June and the decline was led by drop in sale of Nissan, Volvo, Honda and Fiat Chrysler Automobiles.
 
According to data that is available from the industry association ACEA which was published on Wednesday, compared to new car registrations of about 1.62 million in June of 2018 across the European Union, the number was only 1.49 million in June of 2019.
 
The decline was potentially increased because of loss of two sale days in most markets because of calender effect.
 
There was a 27 per cent drop in sale in new cars form Nissan because of its aging models while a 22 per cent slump in deliveries was reported by Volvo. There was a 19 per cent drop in new registrations of vehicles form Honda in June. All are year-to-year figures. Data from ACEA showed that for FCA, there was a 14 per cent drop in new registrations, 10 per cent for BMW, 9.6 per cent for Volkswagen Group and 8.2 per cent for both Mercedes parent Daimler and PSA Group.
 
With a 4.7 per cent rise in registration, the Seat brand of Volkswagen Group was the best performing one even though on the overall there was a drop of 14 per cent in VW brand's volume. Further, there was a 9 per cent drop in Audi and 8.5 per cent for Skoda sales.
 
June was bad month for the brands of the PSA Group barring DS which recorded an increase of 6.4 per cent. Other brands suffered – such as a 11 per cent drop in sale was recorded in registration for Peugeot, a 9.7 per cent fall for Opel and a 3.6 per cent drop for Citroen.
 
Some Asian companies - Toyota, Lexus and Kia increased in volume. 
 
The already downward slide and gloom in the global auto sector was reflected in the weak demand for June and so far this year, there has been a total drop of 3.1 per cent in the sector. Analysts have predicted that there can be further profit warnings especially for European auto makers because their problem of slowing demand in the European market is also compounded by a slowdown and sharp contraction in the Chinese and other emerging markets. market
 
For example, the costs associated with recall of vehicles and allegations of emissions-tampering in diesel cars forced German car maker Daimler to issue its fourth profit warning last week within a period of just over a year. And for the first time in a decade, a loss in its main automotive division was reported by BMW in May.
 
Analysts predict that 2019 could be the second straight year of decline in car sale in Europe considering the market conditions at the half way stage of the year.
 
A 1 per cent drop in sale of cars for the entire year has already been made by ACEA and has identified political and policy uncertainty because of Brexit and slowing demand to be the reason for the drop. The European auto industry had noted straight years of growth since 2013 until last year.
 
(Source:www.europe.autonews.com)






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