The European Automobile Manufacturers’ Association (ACEA) has "radically revised" its forecast regarding the number of passenger car registrations anticipated in the European Union in 2020, estimating a 25 percent decrease compared to 2019. This means that the association expects the figure "to tumble by more than 3 million from 12.8 million units in 2019 to some 9.6 million units this year." The reason is "the major economic crisis facing the auto industry due to Covid-19."
"Following the first shockwaves of the crisis between mid-March and May, the EU market has contracted by 41.5 percent so far this year. This situation is expected to ease to a certain extent in the coming months as lockdown and containment measures are lifted throughout the region," reads the ACEA statement.
Nonetheless, the number of registrations expected for this year is the lowest since 2013, and "in terms of percentage change, the bleak outlook represents the sharpest drop ever witnessed by Europe's automobile sector."
According to Eric-Mark Huitema, ACEA director general, "This dramatic scenario can be mitigated through fast and strong measures by the EU and national governments." Given the slump in sales, "purchase incentives and scrappage schemes are urgently required right across the EU to create much-needed demand for new cars". Huitema asked for "the necessary political and economic support - both at the EU as well as member state levels - in order to limit the damage to production and employment over the months to come."