European Car Sales Decelerate Amid Economic Headwinds
Date
10/22/2024 3:23:57 AM
(MENAFN- The Rio Times) The European automotive market faces strong headwinds. New car registrations in the European Union fell by 6.1% in September 2024 compared to the previous year.
The European Automobile Manufacturers Association (ACEA ) reported that approximately 809,163 vehicles were registered during the month. Germany, France, Italy, and Spain, the bloc's largest markets, led the decline.
The drop reflects weakened consumer demand amid persistent economic challenges. Reduced purchasing power and economic uncertainty appear to be affecting vehicle buying decisions.
Stellantis, owner of brands like Peugeot and Fiat, was hit hard. Its registrations plummeted 27% compared to the previous year. Inventory issues in the US and delays in launching new models hampered its performance.
Not all automakers suffered equally. Volkswagen, the European market leader, recorded a slight increase of 0.3%. BMW saw significant growth of 7.6%, while Mercedes-Benz declined by 7%. Renault witnessed its numbers drop by 1.5%.
Electric vehicles showed resilience amid the overall slowdown. Battery electric car registrations rose by 9.8%, while hybrids grew by 12.5%. In contrast, sales of combustion vehicles and plug-in hybrids decreased.
The current scenario presents challenges and opportunities for the European automotive industry. The transition to electrification continues, but at a slower pace than expected.
Automakers will need to adapt to changing consumer preferences and economic pressures. The outlook for the remainder of 2024 remains uncertain.
The sector's recovery will depend on improving economic conditions and consumer confidence. The European automotive industry faces a period of transformation amid a challenging market environment.
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