European sales slump is world’s worst
Global vehicle sales were down 39% in March compared to the same month in 2019, with Europe hardest hit as it slumped to its lowest levels in 38 years.
Research from JATO Dynamics found that sales for the 27 EU countries collapsed by 52%, with every country suffering. Markets were significantly hit in Italy, France, Spain, Austria, Ireland, Slovenia, Greece and Portugal, where the combined volume fell from 634,600 units in March 2019 to 161,800 units last month.
Meanwhile, sales in the USA totalled one million units, down by 38% from March 2019, but it is expected to suffer more than other regions in April, while in China, the landscape has improved since February, shrinking by 30% year-on-year compared to a 79% fall in February.
Overall, the total for the first quarter of 2020 shows a reduction of 26% compared to 2019 with sales decreasing to 17.42 million units.
Felipe Munoz, JATO’s global analyst, said: “This downward trend is not simply due to the restrictions of free movement. The industry is being impacted largely by the uncertainty for the future, and this issue started to arise even before the pandemic took hold.
“We have to remember that the industry was already operating in a challenging environment, especially towards the end of last year. The trade wars, lower economic growth and tougher emissions regulations came long before the Covid-19 crisis. And unlike previous recessions, we’re not just dealing with people’s fears or purchase delays. This time we have to consider that consumers are simply unable to leave their homes.”
