The European Automobile Manufacturers’ Association (ACEA) has radically revised its 2020 forecast for EU passenger car registrations down to about -25%, in light of the major economic crisis facing the auto industry due to the global Covid-19 pandemic.
This effectively means that the industry association expects car sales in the European Union (EU) 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 car 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 EU.
Nonetheless, in terms of volume, ACEA’s car sales forecast for the EU this year 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,” said 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.”
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. For more information on ACEA, visit www.acea.be.