It’s been 26 years since few cars have been sold in Europe. The outlook is not encouraging

The first six months of the year leave a bleak picture in the auto market: a 14% fewer cars than in the same period in 2021. Altogether, 886,510 units have been registeredin the worst month of June since 1996. A situation that led the market to accumulate 12 months of continuous decline.

June was disastrous for manufacturers’ sales plans. As many as six countries experienced a decline in their markets of 25% or more. Altogether, there are 18 countries that recorded a decrease in their sales of more than 10%.

Except for Lithuania, all countries From the European Union experienced reduced their sales. In Spain, registrations are 7.8% lower than in June 2021, but the cumulative drop in the first half of the year is 10.7%.

If we look at the manufacturers, the month has been particularly difficult for Volvo (down 45.7%) and Mazda (down 42.7% from June 2021). But even big groups like Volkswagen, Stelantis and Toyota were not spared the burnout either, dropping by 22.3%, 17% and 10.8%.

The positive side in June seems to have been seen only by Mercedes, with 7.5% more sales in June but a 7.4% drop so far this year, and Porsche, which in June grew 6.8% and managed to do just that. The same in 2022 at 6.5%. In fact, in 2022, the only manufacturers that They sell more cars In 2021 they are Porsche, DS, Dacia, Kia, Hyundai and Honda. The Alps grow 80.1% in accumulation but in the first six months of 2021 only 758 units were recorded.

Lack of supply and inflation, the perfect storm

Where ACEAwhich is the European Manufacturers Association, indicates that the systematic fraction of Suppliers is the cause of this situation. Arno Antlets, responsible for the finances of the Volkswagen Group, confirmed in April that The situation will not return to normal Until 2024

Where Bloomberg They pointed in the same direction in June, although they indicated that the situation could be resolved in the second half of the year, as they expect the European auto sector to grow.

The problem is that we live in a moment when what is good today may not be good tomorrow. As the Economic Daily pointed out, the problem may not be in the supply chain so much as in high inflation in European countries.

Although officials like Antlitz point out the persistent delays, the European perspectives For the next few months They do not encourage And everything indicates that manufacturers will have to face a scenario recession in the European economy.

The solution that manufacturers have been applying for some time is the same that has already been installed in other activities. Although they can not apply a “re-detail” Just as companies that sell essential goods can do so, they can prioritize selling more expensive cars.

In fact, this is what happens. And everything indicates that every time, Will sell fewer cars but at a higher pricewith an industry also targeting Cars as a Service Thus, as a constant source of income, after the sale.