Inflation and slow growth hamper European car sales
June 17, 2022 - Year-on-year sales of new cars in Europe have declined for an 11th straight month as record inflation and a slowing growth take their toll.
Record financial pressure on households is being reflected in continuing poor sales of new vehicles in Europe – which have fallen for an 11th consecutive month, when comparing year-on-year performance.
New car registrations fell 12.5% to 948,149 in May, compared with 1,083,255 in the same period in 2021.
In the four major European car markets, sales have tumbled, with Italy down 24.3%, France -16.9%, Spain -11.5% and Germany -9.3%.
Germany’s Volkswagen saw the biggest car manufacturer year-on-year decline with a sales drop of more than 21%.
Car sales forecasters, LMC Automotive, say consumer confidence in Europe is now lower than at the start of the pandemic in early 2020, due to record inflation and slowing global economy.