The European automotive market was undoubtedly one of the most affected by the coronavirus pandemic that plummeted the economy. This is reflected in particular by a 52.3% collapse in May over one year, a smaller fall than in April thanks, in particular, to the reopening of dealerships in some countries. A look back at the data published this morning and the situation in this sector.
The new vehicle registrations had known a spectacular fall of the order of 76.3% in the month of April, whereas the confinement in Europe was at its peak. In May, new registrations fell by 55.1%.
As regards the French market, manufacturers have not managed to exceed last month's results with a 52.5% drop in deliveries by the Renault group with the brands Dacia, Lada and Alpine and a 56.4% drop for the manufacturer PSA and the brands Peugeot, Citröen, Opel and DS. These are in any case the figures put forward by ACEA or the European Automobile Manufacturers Association in the press release published this morning.
According to these figures, the number of new passenger cars put into service in the European Union was 581,161 new passenger cars in May compared to 1,217,259 in May last year. However, it is the Spanish market which recorded the most important losses with a drop of 72.7% against 50.3% for France, 49.6% for Italy and 49.5% for Germany. These last three countries have indeed benefited more from the beginning of the deconfinement.
In total and over the first 5 months of the year 2020, this pandemic has led to a 41.5% drop in the European market due to the closure of many dealerships.
As far as the forecasts for this sector are concerned, a significant recovery is expected in June with the deconfinement and purchase subsidy mechanisms put in place by the various governments. However, it will only be possible to make up for the sales losses of March and May partially over the rest of the year and a 32% drop in volumes is expected in Europe by 2020.
Alix Partners states as follows: "While world markets were already in decline and the automotive sector had initiated a historic transformation, abandoning combustion engines for massive investments in electricity, the effects of the Covid-19 crisis are posing serious revenue and cost problems for all players.»
With regard to important announcements, it should be noted that Jaguar Land Rober announced at the beginning of the week the elimination of 1 100 temporary jobs in the United Kingdom and a reduction of 15 000 jobs by Renault, including 4 600 in France. This news is therefore not synonymous with a real recovery in the sector.