European passenger car market is reeling under the effect of global recession. Resultantly, it recorded a 15% sales slump and is likely to feel the heat next year too.
According to the European Automobile Manufacturers' Association (ACEA), economic slowdown and financial crisis dragged the passenger car sales for October this year down by 15% in Europe, reported BBC. Cumulative sales of passenger cars in Europe reached 12.8 Million till October, representing a 5.4% year on year drop, up from 4.4% contraction recorded in September this year.
European automobile registration statistics indicated that 1.13 Million passenger cars were registered in October, whereas a year ago, it was 1.33 Million units. Except Austria, all Western European countries posted a decline in passenger car sales in October. Austria scored a rise of 4% during the month. The Irish and Spanish passenger car industries were rocked by the slowing down economy. For instance, year on year passenger car sales in Ireland dropped by 54.6%, whereas Spanish passenger car sales fell to 13-year low to 40%.
Like other parts of the world, even Europe is not free from the impact of financial crisis. As a result, credit market is getting rigid towards fresh loan dispatch. It is directly hurting the consumers’ buying power, keeping them away from passenger cars. This has started to hit the profit margin of passenger cars sellers in the region.
The Eurozone automobile industry is going through the recession period and presence of high-quality used passenger cars is deteriorating the conditions further for the sellers in the region. Although auto sellers are trying to sustain by reducing their costs, it is believed that 2009 would remain tough for them.
According to a Research Analyst at RNCOS, “The European automobile industry is in big trouble and more sales declines are expected for the next year. The worst impact of financial turmoil and tightened credit market would severely impact the passenger car sales figure. However, a financial aid to the industry may help the industry to withstand the negative growth period.”
Related Market Research Reports:
Slovakia Automobile Sector Analysis
Turkey Automobile Sector Forecast (2008-2012)
China Automobile Sector to 2010
