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Record-breaking Decrease in New Passenger Vehicle Sale in Europe

Personal_Finance / Insurance Apr 17, 2021 - 11:39 AM GMT

By: S_N_Chatterjee

Personal_Finance

COVID-19 pandemic exerted a significant influence on the automotive sector. In 2020, a sharp decrease in new vehicle sale in the European Union was recorded. When compared to 2019, the number of such vehicles is 3 million lower.

According to ACEA (Association des Constructeurs Européens d'Automobiles), Covid-19 pandemic brought many companies to stop production and reduce employment. The first coronavirus wave had the greatest impact on new vehicle sales in 2020. What is more, the financial standing of many people who were interested in buying a car deteriorated.


In what European Union countries were the falls the highest?

According to the analyses presented by ACEA, the highest falls in new vehicle sales were recorded by the following countries:

  1. Croatia (-42.8% when compared to 2019) — the recorded decrease in the number of cars sold is 27 thousand vehicles,
  2. Bulgaria (-36.8% when compared to 2019) — the recorded decrease in the number of cars sold is 13 thousand vehicles,
  3. Portugal (-35% when compared to 2019) — the recorded decrease in the number of cars sold is 78 thousand vehicles.

Unfortunately, the largest vehicle markets in Europe suggest the decrease in demand for new vehicles reaching several hundred thousand cars. The first places are taken by:

  1. Spain (-32.3% when compared to 2019, 407 thousand cars fewer),
  2. Italy (-27.9% when compared to 2019, 535 thousand cars fewer),
  3. France (-25.5% when compared to 2019, 564 thousand cars fewer),
  4. Germany (-19.1% when compared to 2019, 690 thousand cars fewer).

When did the breakthrough time come?

Based on data concerning the number of new passenger vehicles registered in EU countries in 2020 and 2019, it is easy to notice that the decrease in the sale of brand new vehicles is connected with coronavirus pandemic occurrence, primarily with its first wave.
              
In March 2020, the demand for new cars decreased by 55%. In April, it fell by another 21%. In May, the index returned to above 52%. September was the only month last year when higher sale of new vehicles when compared to the previous month was recorded. The number of registered vehicles of that type increased by 3.1% then.

Which manufacturers were most afflicted by the decrease?

In one of its reports, ACEA mentions the number of registered new passenger vehicles by manufacturers. It turns out that virtually all automotive companies recorded high decrease in the number of cars sold.

Which vehicle makes recorded the highest decrease in sale in 2020?

Vehicle make

Registrations of new passenger vehicles in EU (+EFTA+UK) in 2020

Registrations of new passenger vehicles in EU (+EFTA+UK) in 2019

% change 2020/2019

OPEL

485,778

815,707

-40.4

FIAT

492,101

659,666

-25.4

VOLKSWAGEN

1,346,999

1,783,924

-24.5

PEUGEOT

741,498

964,993

-23.2

RENAULT

819,009

1,062,808

-22.9

AUDI

600,470

742,716

-19.2

BMW

674,654

831,066

-18.8

MERCEDES

738,236

892,511

-17.3

SKODA

643,019

762,491

-15.7

TOYOTA

648,275

742,497

-12.7

Effect of COVID-19 pandemic on the decrease in new vehicle sale

The global coronavirus pandemic is surely one of the most important causes of the decreasing interest in new vehicles. However, this is not the only reason. An important factor contributing to such a situation is e.g. the increase in the new vehicle prices particularly if we consider the fact that it is not in proportion to the average pay. In other words, the car prices grow more than the salaries of citizens in many European countries.

Vehicle sale and insurance

If we decide to buy a brand new vehicle, we must buy a third party liability insurance in advance. The owner of a brand new vehicle must buy the mandatory policy on the vehicle registration day on the latest. This is crucial as it is impossible to collect the vehicle from the distributor without valid third party liability insurance.

Consequently, it is worth looking for the insurance even before you visit the dealer’s. The easiest way will be to use the car insurance calculator. Thanks to it, you will not only compare the vehicle policies, checking their prices and scope, but also buy them fast and easily online.

By S N Chatterjee

Copyright 2021 © S N Chatterjee - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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