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EU car sales forecast 2020: Record drop of 25% expected this year, says ACEA

Monday, June 29, 2020   (0 Comments)
Posted by: Matt Watson
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EU car sales forecast 2020: Record drop of 25% expected this year, says ACEA

23/06/2020


Brussels, 23 June 2020 – In the light of the major economic crisis facing the auto industry due to COVID-19, the European Automobile Manufacturers’ Association (ACEA) has radically revised its 2020 forecast for passenger car registrations down to about -25%.

This effectively means that the industry association expects car sales in the European Union to tumble by more than 3 million from 12.8 million units in 2019 to some 9.6 million units this year.

Following the first shockwaves of the crisis between mid-March and May, the EU market has contracted by 41.5% so far this year. This situation is expected to ease to a certain extent in the coming months as lockdown and containment measures are lifted throughout the region.

Nonetheless, in terms of volumes, ACEA’s forecast for 2020 represents the lowest number of new cars sold since 2013, when the industry had come through six consecutive years of decline in the aftermath of the 2008-2009 financial crisis. In terms of percentage change, the bleak outlook represents the sharpest drop ever witnessed by Europe’s automobile sector.

“ACEA maintains hope that this dramatic scenario can be mitigated through fast and strong measures by the EU and national governments,” stated ACEA Director General, Eric-Mark Huitema.

“Given the unprecedented collapse in sales to date, purchase incentives and scrappage schemes are urgently required right across the EU to create much-needed demand for new cars. In the interest of our industry and the wider EU economy, we are calling for the necessary political and economic support – both on the EU as well as the member state levels – in order to limit the damage to production and employment over the months to come.”

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Notes for editors

  • In January 2020, ACEA had forecast a drop of 2% in new car registrations for the year: https://www.acea.be/press-releases/article/auto-industry-sets-out-plan-for-carbon-neutrality-under-eu-green-deal-amid.
  • EU car sales: -5.6% in 2010, -1.6% in 2011, -8.2% in 2012, -1.4% in 2013; +5.6% in 2014, +9.3% in 2015, +6.8% in 2016, +3.4% in 2017, +0.2% in 2018 and +1.2% in 2019. Revised forecast for 2020: -25%.
  • Passenger car registrations for the first five months of 2020: https://www.acea.be/press-releases/article/passenger-car-registrations-41.5-five-months-into-2020-52.3-in-may.
  • An interactive map showing the impact of COVID-19 on the production of motor vehicles for each of the 27 EU member states plus the UK can be found here: https://www.acea.be/news/article/interactive-map-production-impact-of-covid-19-on-the-european-auto-industry.
  • The paper ‘25 actions for a successful restart of the EU’s automotive sector’ is available at: https://www.acea.be/publications/article/paper-25-actions-for-a-successful-restart-of-the-eus-automotive-sector.

About the EU automobile industry

  • 13.8 million Europeans work in the auto industry (directly and indirectly), accounting for 6.1% of all EU jobs.
  • 11.4% of EU manufacturing jobs – some 3.5 million – are in the automotive sector.
  • Motor vehicles account for €440.4 billion in taxes in key European markets.
  • The automobile industry generates a trade surplus of €84.4 billion for the EU.
  • The turnover generated by the auto industry represents over 7% of EU GDP.
  • Investing €57.4 billion in R&D annually, the automotive sector is Europe's largest private contributor to innovation, accounting for 28% of total EU spending.

About ACEA

  • ACEA represents the 16 major Europe-based car, van, truck and bus manufacturers: BMW Group, CNH Industrial, DAF Trucks, Daimler, Ferrari, Fiat Chrysler Automobiles, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Jaguar Land Rover, PSA Group, Renault Group, Toyota Motor Europe, Volkswagen Group, Volvo Cars, and Volvo Group.
  • More information about ACEA can be found on www.acea.be or www.twitter.com/ACEA_eu.
  • Contact: Cara McLaughlin, Communications Director, cm@acea.be, +32 485 88 66 47.

Read the full article:  https://www.acea.be/press-releases/article/eu-car-sales-forecast-2020-record-drop-of-25-expected-this-year-says-acea

 

 

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