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Bloomberg
European car sales virtually stopped in April, dropping the most on record after the coronavirus halted production and closed dealerships from Spain to Germany.
Passenger vehicle registrations in the European Union, the European Free Trade Association and the UK fell 78% year-over-year. Companies sold just 292,182 cars — the lowest number since data-gathering began in 1990, and a further drop from March, itself a month of plummeting sales,
the European Automobile Manufacturers Association said on Tuesday.
Carmakers from Ford Motor Co. to Volkswagen AG have warned they’ll lose money because of the pandemic, which has shuttered factories and showrooms for weeks. European governments are slowly relaxing lockdown rules and factories are firing up again, fuelling hopes that April will mark the trough.
While visibility remains low, auto sales rebounded in China last month, an encouraging sign for the rest of the world. German Chancellor Angela Merkel on Monday proposed a recovery fund that would soften the region’s economic blow.
Nevertheless, European consumer behavior remains uncertain because of shaky investor confidence and concerns that restrictions could be tightened again in the event of a second wave of infections.
Sales have dropped about 40% during the first four months of the year, in a sign that a full recovery will take some time. European car sales are forecast to decline as much as 20% in 2020, according to Bloomberg Intelligence’s Michael Dean.
Every single European nation reported falling registrations last month, from a 61% drop in Germany, the region’s largest market, to a 97% plunge in Spain, where just over 4,100 cars were sold. The UK, Italy and France posted similar declines.
Manufacturers have also increased spending on electric vehicles required to meet tougher emissions regulations, investments funded by profits from conventional cars.
The pandemic’s effects on the economy is forecast to give electric vehicles a boost in China, Europe and other countries that have prioritized a transition to batter-powered cars, according to a report released Tuesday by BloombergNEF. Overall, however global auto sales aren’t expected to recover for five years.