In the face of the major economic crisis facing the auto industry due to COVID-19, the European Automobile Manufacturers’ Association (ACEA) forecasts a 25% drop for EU new car sales this year.
ACEA expects car sales in the European Union to tumble by more than 3 million from 12.8 million units in 2019 to some 9.6 million units this year.
The EU car market has contracted by 41.5% so far this year, but ACEA says the situation is expected to ease in the coming months as lockdown and containment measures are lifted throughout the region.
ACEA’s forecast for 2020 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 forecast 25% annual decline this year represents the sharpest drop ever witnessed by Europe’s automobile sector.
The trade association also called for support for the sector.
“ACEA maintains hope that this dramatic scenario can be mitigated through fast and strong measures by the EU and national governments,” stated 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.”
Data and analytics company GlobalData forecasts that the European light vehicle market will turn out down 23.2% this year at 15.8 million units.