Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Chinese Tech Stocks CCP Paranoia, VIES - Variable Interest Entities - 19th Oct 21
Inflation Peaked Again, Right? - 19th Oct 21
Gold Stocks Bouncing Hard - 19th Oct 21
Stock Market New Intermediate Bottom Forming? - 19th Oct 21
Beware, Gold Bulls — That’s the Beginning of the End - 18th Oct 21
Gold Price Flag Suggests A Big Rally May Start Soon - 18th Oct 21
Inflation Or Deflation – End Result Is Still Depression - 18th Oct 21
A.I. Breakthrough Could Disrupt the $11 Trillion Medical Sector - 18th Oct 21
US Economy and Stock Market Addicted to Deficit Spending - 17th Oct 21
The Gold Price And Inflation - 17th Oct 21
Went Long the Crude Oil? Beware of the Headwinds Ahead… - 17th Oct 21
Watch These Next-gen Cloud Computing Stocks - 17th Oct 21
Overclockers UK Custom Built PC 1 YEAR Use Review Verdict - Does it Still Work? - 16th Oct 21
Altonville Mine Tours Maze at Alton Towers Scarefest 2021 - 16th Oct 21
How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
The Only way to Crush Inflation (not stocks) - 14th Oct 21
Why "Losses Are the Norm" in the Stock Market - 14th Oct 21
Sub Species Castle Maze at Alton Towers Scarefest 2021 - 14th Oct 21
Which Wallet is Best for Storing NFTs? - 14th Oct 21
Ailing UK Pound Has Global Effects - 14th Oct 21
How to Get 6 Years Life Out of Your Overclocked PC System, Optimum GPU, CPU and MB Performance - 13th Oct 21
The Demand Shock of 2022 - 12th Oct 21
4 Reasons Why NFTs Could Be The Future - 12th Oct 21
Crimex Silver: Murder Most Foul - 12th Oct 21
Bitcoin Rockets In Preparation For Liftoff To $100,000 - 12th Oct 21
INTEL Tech Stock to the MOON! INTC 2000 vs 2021 Market Bubble WARNING - 11th Oct 21
AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
Stock Market Wall of Worry Meets NFPs - 11th Oct 21
Stock Market Intermediate Correction Continues - 11th Oct 21
China / US Stock Markets Divergence - 10th Oct 21
Can US Save Taiwan From China? Taiwan Strait Naval Battle - PLA vs 7th Fleet War Game Simulation - 10th Oct 21
Gold Price Outlook: The Inflation Chasm Between Europe and the US - 10th Oct 21
US Real Estate ETFs React To Rising Housing Market Mortgage Interest Rates - 10th Oct 21
US China War over Taiwan Simulation 2021, Invasion Forecast - Who Will Win? - 9th Oct 21
When Will the Fed Taper? - 9th Oct 21
Dancing with Ghouls and Ghosts at Alton Towers Scarefest 2021 - 9th Oct 21
Stock Market FOMO Going into Crash Season - 8th Oct 21
Scan Computers - Custom Build PC 6 Months Later, Reliability, Issues, Quality of Tech Support Review - 8th Oct 21
Gold and Silver: Your Financial Main Battle Tanks - 8th Oct 21
How to handle the “Twin Crises” Evergrande and Debt Ceiling Threatening Stocks - 8th Oct 21
Why a Peak in US Home Prices May Be Approaching - 8th Oct 21
Alton Towers Scarefest is BACK! Post Pandemic Frights Begin, What it's Like to Enter Scarefest 2021 - 8th Oct 21
AJ Bell vs II Interactive Investor - Which Platform is Best for Buying US FAANG Stocks UK Investing - 7th Oct 21
Gold: Evergrande Investors' Savior - 7th Oct 21
Here's What Really Sets Interest Rates (Not Central Banks) - 7th Oct 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

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.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in