'Worst is over' for European car sales

25th October 2013

'Worst is over' for European car sales

This is the growing feeling amongst the industry experts and there are growing signs the relentless six-year slump in European car sales looks to have eased. Supporting this is the recent rise in share prices of several automotive manufacturers. It underlines a new confidence among investors that the industry may have turned a corner.

New registrations in Europe lowest January to August level ever recorded

For the first ten months of 2013 sales in Europe new registrations fell by 5.2% when compared to the same period last year. Totaling 7,841,596 units, representing the lowest January to August level ever recorded**

Modest growth in July and August

Car sales in Europe for the full year are still expected to be below last year, and some 20% below their 2007 peak of about 16 million vehicles. But, increasingly, analysts are forecasting a return to growth next year, with Moody's forecasting a 3% sales rise in 2014 on this year.

"We anticipate a mild increase in sales growth to 4.8% for 2014 from our newly revised forecast of 3.2% for 2013, mainly because of higher-than-expected demand in China," said Falk Frey, Moody's Senior Vice President and author of the report. "As Chinese car market growth continues to be above GDP growth rates, we have revised upward our forecast for light vehicle demand growth to 10% from our January expectation of 7% growth for both 2013 and 2014."

At the 2013 Frankfurt Motor Show the feeling was “things have stabilised"

Roelant de Waard, Ford of Europe's head of sales and marketing, declared "The worst is over,.." This view was supported by Dan Akerson, General Motors' chief executive who is reported to have told the Detroit News there was "some sunshine on the horizon".

**since the beginning of the series in 1990
 

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