Sales of European cars are set to decline a second straight year after June figures showed that new car registrations dropped by 7.9%, the biggest fall since December 2018. This is according to figures recently published by the Association of European Carmakers (ACEA).
The published figures show that new car registrations dropped from 1.62 million in June of 2018 to 1.49 million this year. In probably one of the most obvious statements ever from a trade body, the ACEA cite “weakening demand” as the culprit. Really? We would have never guessed.
Uncertainty around Brexit may have impacted some of the sales, but of primary concern have been the weakening of demand from China due to the domestic push for EVs and the international trade war with Trump’s America, which has pushed up the price of certain key components and, in turn, increased prices of vehicles.
Some companies have fared worse than others. The biggest loser has been Nissan, which produces a lot of its global products in Sunderland, which is in the northeast of England; the Japanese carmaker has suffered a 27% decline. Honda, which has closed car plants in the UK, also fared pretty poorly with a 19% decline. Following suit are the likes of Daimler and BMW, which are all recording double-digit drops in sales.
There is one shining light of success though and that is up north near Malmo in Sweden, where Volvo has bucked the trend and is actually recording positive growth for the year. This is largely due to the refreshed line-up of SUVs and hybrid powertrains that are being marketed by the well-known Swedish marque that is, of course, owned by Geely now.
image : the japan times
