Volume brands could see car sales fall another 3.5% in the fourth quarter of the year, according to analysis from Bloomberg Intelligence.
It reported that most vehicle manufacturers increased discounts in the third quarter but it wasn’t enough to prevent sales falling by 17% in August and five per cent in September.
Michael Dean, senior industry analyst – Autos at Bloomberg Intelligence, said:
“Average discounts in Europe have continued their upward trend as automakers face slowing demand amid economic uncertainty. Based on the five largest countries, September registrations declined by five per cent.”
He predicted that further discounts would be introduced in the final three months of the year, but suggested sales volumes would continue a downward trend to reach 15% below pre-pandemic levels.
Dean concluded:
“We expect a drop of at least 3.5% in the fourth quarter, raising the risk of overcapacity and plant closings. That’s prompted a spate of profit warnings on the back of already weak earnings, which showed the first signs of negative pricing this decade.”
