Europe's New Car Market Continues To Struggle

Despite early signs of a recovery in the industry, Europe's new car market continues to decline as shown in the latest analysis from the world's leading provider of automotive intelligence, JATO Dynamics.

Overall, the European performance is 4.6 percent down on October 2009's position. Sales in Europe's ‘Big Five' markets of Great Britain, Germany, Spain, France, and Italy are all showing negative growth while sales in Central and Eastern Europe have performed well. Surprisingly, despite Ireland's economic trouble, sales in the country grew 114.7 percent in October compared to the same period last year. This is largely down to Ireland still running a scrappage scheme, having not had one last year.

Sales for eight of the top 10 brands in Europe were also down in October with only BMW and Audi showing positive growth, up 6.3 percent and 1.4 percent respectively on the same time last year. In terms of units sold, Volkswagen retains its place as Europe's best-selling brand in October, with the Golf and Polo as Europe's top two selling models.

Surprisingly, sales of large, premium models are growing despite the economic conditions. For example, sales of the BMW 5 Series were up 68 percent in October compared to last year, while the Land Rover Range Rover and Mercedes E-Class were up 40.8 percent and 12.7 percent respectively.

David Di Girolamo, Head of JATO Consult, explains: "While a direct comparison due to last year's Scrappage schemes is difficult, our data demonstrates the industry still has a long way to go in its recovery. What is encouraging, however, is that those markets that did not have Scrappage schemes last year are now showing increased sales, providing a glimmer of hope for the industry."

Leggett & Platt Commercial Vehicle Products

NAFA Fleet Management Association
125 Village Blvd., Suite 200
Princeton, NJ 08540

Telephone: 609.720.0882 Fax: 609.452.8004