Volkswagen’s sales in Europe dropped significantly in March compared with the year-ago period.
In a result that surprised no observer of the automotive industry, European new vehicle registrations fell more than 50% in March when compared with the year-ago period. The vast majority of that decline can be tied to the coronavirus pandemic.
The European Auto Industry Association reported last Friday that new car registrations plummeted 51.8% to 853,077 vehicles in the European Union, Britain and the European Free Trade Association (EFTA) countries.
However, if Great Britain’s sales numbers are removed, which is the case with the European Automotive Manufacturers Association (ACEA), the number falls even further to 55.1%. Registrations, or sales, slumped in all markets on the continent, but Italy was hardest hit, seeing sales fall 85.4%, according to the ACEA.
(U.S. car sales tumble sharply — but not as bad as originally feared.)
Other countries had it tough as well with France seeing a slide of 72.2%, Spain at 69.3%, and Germany coming in at a decline of 37.7%. Naturally, European automakers posted massive sales declines as well for last month.
Volkswagen Group’s sales decreased by 43.6% in March, while Renault and PSA Group reported falls of 63.7% and 66.9%, respectively. Luxury maker BMW dropped by 39.7%, while rival Mercedes-Benz slid 40.6%.
The decline in registrations comes as the majority of car dealerships in Europe were closed during the second half of March as part of the measures to contain the pandemic, Reuters reported.
(Post-pandemic, global auto sales still likely to remain tanked through 2021.)
From January to March 2020, demand for new cars in the European Union slumped by 25.6%, with the impact of the pandemic on March severely cutting the totals. Each of the major EU markets posted significant losses so far in 2020: Italy 35.5%, France 34.1%, Spain 31% and Germany 20.3%, the ACEA reported.
The EU passenger car market contracted by 7.4% to 957,052 units registered in February. The ACEA attributed the drop to a “combination of factors,” such as vehicle taxation changes, weakening global economic conditions and consumer uncertainty. The February drop mirrors the total decline for January and February.
The results mirror those reported in the U.S. during March, which fell just under 40% compared with the same time last year.
(2020 vehicle sales outlook looking grim, analyst predicts.)
April in the U.S. is expected to be more difficult, with some predicting declines in excess of 60%. As shelter-in-place orders are still in effect in most places and three states have completely banned new vehicle sales, while 24 others – collectively representing about half of the U.S. market – have severely restricted retailers, in some cases allowing them to operate only online.