European car market down 7.4% in January according to ACEA

  •   18/02/2020 - 16h31
  •   DEHOUI Lionel

If there is one news that shakes investors in the automotive market this Tuesday in February, it is the figures announced by the European Automobile Manufacturers Association (ACEA). An announcement that worries everyone, and some are already trying to establish the connection between the coronavirus epidemic that is making headlines at the beginning of the year 2020. While economists were delighted with the turnover figures of the past year (2019) at the Italian bank Banca Generali, ACEA is attracting all the attention with a drastic decrease. In fact, the first month of this year's balance sheet for the car market showed a 7.4% decrease in registrations. These results are not encouraging given the efforts made. Reuters (PARIS) did not fail to point this out.

European car market down 7.4% in January according to ACEA

Impacts of Tax Measures

According to the results for December, registrations had to make a respectable jump of 21.4%. Then what happened? By the way, the important changes on taxation previously announced by some EU member governments for the year 2020 have been a source of suffering for some sales. These are vehicle sales taking place in the member countries of the Free Trade Association and those of the EU (at 1,135,116).

Thus, the changes form the basis for advance purchases in December 2019. This is what can be retained from the press release, which immediately interested all investors who are awaiting the long-awaited rebound of the Paris Stock Exchange. Uncertainty about the United Kingdom's exit from the European Union and the deterioration in the economic climate are the factors responsible for the decline in sales.

 

Similar results

This is clear from the ACEA press release which had just published the worst revenue result in January. Such figures have not been achieved since the 2016 balance sheet for the European Union alone in the automotive market. This continental area still remembers the results of Italy (-5.9%), Spain (-7.6%), Germany (-7.3%) and France, which had fallen by -13.4%. Today, we have to get up.

 

The state of the automotive market

The various brands of cars in the Fiat Chrysler Automobiles group recorded a 6.4% fall, while the PSA manufacturer's sales detail showed a 14% decline. At the same time, the internationally renowned automotive giant Renault fell 16.4% while Daimler's sales fell 10.1%.

When we look at Toyota's figures, we see that they are still up sharply by 10.1%. At the same time, its direct competitor in the vehicle market (Volkswagen) remains comfortably stable (-0.1%). The car market is still hungry and hopes for a better future. He is looking forward to the results of this month, which moves forward daily with the death toll of the coronavirus epidemic.