EUROPEAN AUTOMOBILE MARKET SHRANK BY 1.9% IN NOVEMBER

Thu 19 December 2024:

The European passenger car market narrowed 1.9% year-on-year in November, reversing growth seen in the prior month, with France leading the decline, an industry group report said Thursday.

New passenger car registrations in the EU last month totaled 869,816 units, the European Automobile Manufacturers’ Association (ACEA) said.

France saw the steepest drop at 12.7%, followed by Italy with a 10.8% decline, while Germany remained nearly flat, inching down 0.5%. Spain was the only major EU market to show growth, rising 6.4%.

The battery-electric car market share for November fell to 15% from 16.3% last year, while volumes dropped 9.5%.

In January-November, new car registrations in the 27-member bloc rose slightly 0.4%, reaching 8.7 million units.

Spain’s car market grew 5.1% in the first 11 months of this year, while France saw a 3.7% drop, and Germany and Italy experienced smaller declines of 0.4% and 0.2%, respectively.

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In 2024, the European car market experienced a decline due to several key factors:

Economic Challenges: High interest rates and a weakening economy reduced consumer purchasing power, leading to decreased demand for new vehicles.
Competition from Chinese Manufacturers: European automakers faced increased competition from Chinese electric vehicle (EV) manufacturers, who offered more affordable options, capturing significant market share both in Europe and China.
Regulatory Pressures: Stricter EU emissions regulations required automakers to increase EV sales to at least 20% of their total sales by January 1, 2025, to avoid fines. This led to price adjustments, with manufacturers raising petrol car prices and offering discounts on EVs, creating market instability.
Supply Chain Disruptions: Ongoing supply chain issues, including shortages of essential components, hindered production capabilities, affecting the availability of new cars in the market.
Reduced Consumer Incentives: The phase-out of subsidies for EVs in key markets like Germany led to a slowdown in EV sales growth, impacting overall market performance.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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