Europe’s light vehicle market faces long recovery climb

Following ACEA’s latest assessment that new car sales in the European Union will fall by 25% in 2020;

David Leggett, Automotive Analyst at GlobalData, a leading data and analytics company, offers his views:

“In May, the European passenger car market (EU+EFTA+UK) suffered another sharp drop, with new registrations falling by 57.2% on last year.

“However, lockdowns eased in May and we anticipate gradual improvement to new car demand in the region over the rest of the year, particularly as purchase and scrappage incentives come into play in major markets such as France, Italy and Spain.

“Nevertheless, GlobalData forecasts that the European light vehicle market will turn out down 23.2% this year at 15.8 million units. That’s a much bigger drop than occurred during the international financial crisis of a decade ago.”

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