European car sales fall 8.1 percent in June

Article by Christian Andrei, on July 15, 2011

New-car sales in Europe plunged the most in June, its biggest fall within the past eight months, as some markets were hit by the withdrawal of state-sponsored scrapping schemes and as economic uncertainty has made consumers wary.

Specifically, sales dropped 8.1 percent on the same month last year, the largest drop since the 16.6 percent decline last October, according to the data released by automakers association ACEA on Friday.

The trend was highlighted by the German vehicle industry association, VDA, which stated that the number of new registrations of German-brand vehicles in western Europe slipped 8 percent in June on the year before.

ACEA's June figure is compared with an increase of 7.1 percent in May, wherein the effects of economic recovery seemed to be holding sway, though sales within the five months were down 0.8 percent and ACEA pointed out that sales were still running below pre-crisis levels.

The low market conditions, which are prompting automakers to speed up efforts in fast-growing regions like Russia, India, China and Brazil, make matters worse as the subsidies to consumers trading in old vehicle models are ending.

In France, car sales dropped 12.6 percent in June, as the scrapping scheme expired in December, though customers were permitted to register their new vehicles under the scheme until March.

In Spain, subsidies ended last July. June sales fell by 31.4 percent. The figures provided by ACEA also revealed that registrations in the first half of this year were down 2.1 percent versus the same period a year earlier, with 7.1 million passenger vehicles registered throughout the European Union.

Topics: europe, sales

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