European car sales forecast to drop by record 25% due to Covid-19

Car sales in the European Union are expected to fall to 9.6 million vehicles, from 12.8 million last year, the European Automobile Manufacturers Assoc
...
In the US, Ford Motor Co. forecast a $5 billion loss for the three months through June. (Representational photo) (REUTERS)
In the US, Ford Motor Co. forecast a $5 billion loss for the three months through June. (Representational photo)

European car sales are forecast to drop by a record 25% this year after the coronavirus pandemic shuttered factories and showrooms, leading to a collapse in demand.

Sales in the European Union are expected to fall to 9.6 million vehicles, from 12.8 million last year, the European Automobile Manufacturers Association said Tuesday in its first forecast since January, before Covid-19 hit the region.

Also check these Cars

Find more Cars
Mahindra Ekuv100 (HT Auto photo)
UPCOMING
40 kWh 85 Kmph 150 Km
₹ 8.25 - 10 Lakhs
View Details
Porsche 911 Gt3 (HT Auto photo)
3996.0 Petrol Automatic
₹ 2.50 Cr
Compare
View Offers
Mahindra S204 (HT Auto photo)
UPCOMING
₹ 12 Lakhs
View Details
Lexus Nx (HT Auto photo)
2494.0 Multiple Both
₹ 64.90 - 71.60 Lakhs
Compare
View Offers
Rolls-royce New Ghost (HT Auto photo)
UPCOMING
6750 cc Petrol Automatic
₹ 6.95 - 7.95 Cr
View Details
Mercedes-benz Amg E53 Cabriolet (HT Auto photo)
2999.0 cc Petrol Automatic
₹ 1.30 Cr
Compare

That’s the lowest number of cars sold in seven years, when the industry was emerging from a years-long decline after the 2008 financial crisis, and the steepest percentage drop ever.

Also Read : How Europe plans to check Chinese investments in automotive companies

The exact shape of a potential recovery remains unclear as carmakers from Volkswagen AG to Fiat Chrysler Automobiles NV prepare to announce results for what likely will be a devastating second quarter. In the US, Ford Motor Co. forecast a $5 billion loss for the three months through June.

“Given the unprecedented collapse in sales to date, purchase incentives and scrappage schemes are urgently required right across the EU to create much-needed demand for new cars," ACEA Director General Eric-Mark Huitema said in an emailed statement.

Also Read : UK car sector calls for more government help to handle coronavirus hit

The EU market has contracted 41.5% so far this year, ACEA said. It expects sales to slightly recover in the coming months as lockdowns end and life slowly returns to normal.

While new auto registrations across the region fell 57% year-over-year last month, it was an improvement from an even steeper plunge in April.

First Published Date: 23 Jun 2020, 13:47 PM IST
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.