According to the Economic and Steel Market Outlook 2012-2013/Q3 2012 Report from the Economic Committee of the European Steel Association (EUROFER), in the second quarter of 2012 the European Union (EU) passenger car market did not show any signs of improvement and sales were down 6.9 percent in April and 8.7 percent in May, pushing the decline in car sales in the first half of the year to 7.7 percent, all on year-on-year basis.
According to the report, sales saw particularly sharp declines in France, Italy and Spain. Meanwhile, the downward trend in commercial vehicle sales also intensified in recent months. Commercial vehicle sales almost decreased by 18 percent year on year in May, following a 7.9 percent year-on-year drop in the first quarter of 2012, both compared to the corresponding period of the previous year. According to the report, the most affected market segment was light commercial vehicles, while demand in the medium and heavy truck segment showed a better performance.
EUROFER stated that export demand for passenger cars also lost momentum in the second quarter. German exports fell by more than 17 percent year on year in May, reflecting that globally the car market is currently going through a soft patch. US car sales continuing at a strong pace and the weaker euro remained supportive of sales abroad.
The outlook for the remainder of 2012 points to an intensifying downward pressure on output. Weak sentiment and financing restrictions will act as a drag on overall vehicle sales. Also, exports look set to lose some further momentum in the months ahead. According to EUROFER, EU automotive output is forecast to fall by around two percent in 2012, while 2013 forecasts show a slight improvement in output beginning from the second quarter as confidence gradually returns to the markets and as financing conditions improve. EU automotive production is foreseen to grow by almost two percent in 2013.