According to the Economic and Steel Market Outlook 2012-2013/Q1 2012 Report from the Economic Committee of the European Steel Association (EUROFER), in 2011 European Union (EU) passenger car sales were down 1.7 percent year on year. The only major market registering growth was Germany, while sales in Spain declined by almost 18 percent in 2011.
Meanwhile, commercial vehicles sales in the EU increased by 10 percent in the given year. Export demand for passenger cars has slowed down, with the annual growth in German passenger car exports at seven percent year on year in 2011.
EUROFER stated that automotive output grew beyond expectation, by 10.2 percent year on year in the third quarter of 2011. Output growth for the fourth quarter is estimated to have slowed down to below three percent year on year due to slowing domestic and export demand and production cuts to avoid stock building. Automotive production in 2011 is estimated to have risen by almost 11percent year on year.
The outlook for the remainder of 2012 is vague because of the economic uncertainties and depressed levels of consumer confidence. Export demand for passenger cars will be weaker given the current situation of the global economy. However, demand from the US and Asian markets will remain strong.
According to EUROFER, in 2012 EU automotive output is forecast to stagnate at 2011 levels and to increase by two percent in 2013.