Challenges rising in Europe’s car market, says GlobalData

Data and analytics company GlobalData has released data showing that Western Europe’s car market was up 3.7 per cent year-on-year in August and the annual selling rate was also up versus July.

David Leggett, automotive analyst at GlobalData, comments: “The Western Europe car market was up versus last year and the annual selling rate improved to 12.4 million units a year in August, from 9.5 million a year in July. However, it should be noted that August is normally the weakest month for new vehicle registrations in the region. September’s market will be more significant as an indicator of where the market is heading.”

At this stage, GlobalData forecasts that Western Europe’s car market is heading for a 2022 total of just under 10 million sales, which would be 6 per cent down on last year and compares with 14.3 million sales in pre-pandemic 2019.

Leggett continues: “Companies in Europe are faced with a fundamentally weak market this year. Moreover, challenges are rising. Just as the chips crisis and associated supply-side constraints to sales start to ease, attention switches to demand-side concerns later this year and into next year.

“Challenging conditions for vehicle manufacturers and suppliers alike are set to be a part of the industrial landscape in automotive for a while yet. Besides the market squeeze caused by a looming economic downturn, companies face further supply-side pressures in the shape of rising costs for raw materials and energy.”