New car registrations slump in Europe amid weakening demand, steep EV decline
Summary
- Stellantis and Volkswagen suffered significant falls in new-car registrations in August, contributing to a sharp overall decline in the European Union, as demand weakened in key markets and electric-vehicle sales fell.
Stellantis and Volkswagen posted significant drops in August new-car registrations in the European Union, contributing to a sharp overall decline as demand weakened in key markets and electric-vehicle sales fell.
Consumers in core markets of Germany, France, Italy and Spain drove an 18% on-year drop in the bloc’s monthly registrations, which reflect sales, the European Automobile Manufacturers’ Association said Thursday. EU registrations came to around 643,600 for the month, with every major European carmaker posting declines.
Stellantis, the multinational company behind European brands like Peugeot, Citroen and Fiat, posted a nearly 30% drop-off in registrations compared with last year. The carmaker, which also owns Jeep and Dodge, said in July that it would consider cutting prices to attract consumers and offload inventory after disappointing earnings. Back then, company executives pointed to new model launches to buoy its performance the rest of the year.
Registrations for Volkswagen, Europe’s largest carmaker, fell 15%, ACEA said. The decline came as the company considers closing factories in Germany and Belgium amid cost-cutting efforts and low demand for EVs.
German luxury brands BMW and Mercedes-Benz experienced drops of 16% and 13%, respectively. France’s Renault saw new-car registrations fall 14%.
The EU recorded a steep monthly decline in new fully-electric vehicle sales amid a transition for an industry that has invested heavily in their production. EV registrations plunged 44% to about 92,600, the industry group said. Their market share slipped to 14% from 21% the year prior.
Traditional hybrid cars were the only vehicle type that had growth in August, with registrations rising 6.6%, according to ACEA. Sales of conventional gas-burning cars and plug-in hybrids both declined.
Write to David Sachs at david.sachs@wsj.com
