The corona crisis continues to hit the auto industry hard. The Association of German Manufacturers provides an update on May and discusses growth in China. How will the situation evolve in the future?
EU new car sales rebounded little in May: after the crisis New registrations in April, that figure fell by about 52% in May, according to the association of European manufacturers Acea. EY analyst Peter Fuß sees a “slightly positive trend”, with most countries easing their corona restrictions again in May.
Acea reports that 581,161 new cars were registered in the EU last month – as of May 2019, there were still over 1.2 million. The recession in Spain was particularly strong at minus 73%.
Restrictions were relaxed in other major markets: 168,148 new cars were registered in Germany, 49.5% less than in the same month last year. New registrations also fell in France and Italy by around 50%.
Britain hit hard by Corona crisis
Outside the EU, one country has been hit even harder than Spain: according to the German Automobile Industry Association (VDA), only 20,200 new cars were registered in Britain in May, this which corresponds to a decrease of 89%.
In the United States, passenger car sales fell 44%. The Chinese market, on the other hand, grew 6% with 1.6 million new vehicles sold – “It was the first month of growth in nearly two years,” the VDA said.
For the EU, the manufacturers association’s previous annual analysis was sobering: over the five-month period from January to May, the drop was 41.5%. There were 35% fewer new registrations in Germany than in the same period last year.
How will the situation evolve in the future?
EY expert Fuß expects the situation to improve further in June; the drop will then be around a third in the EU. A year-on-year decline is expected, in Germany by 20 percent. But the prerequisite is the successful mastery of the Corona virus.
The effect of the German economic stimulus package on auto sales believes the maneuver is manageable: the VAT cut from July will still lead to a strong reluctance to buy in June, with consumers speculating on lower prices on the next day. next month. After that, there would be “a large number of deadlines, but hardly any new buying impetus.”
The superior Environmental bonus make Electric car Although attractive in terms of price, Fuß continued. But “the number of parts in this segment is still far too small to be the result of an e-boom automobile industry could be saved “.