EUROFER: EU automotive sales down 8.2 percent in 2012

According to the Economic and Steel Market Outlook 2013-2014/Q1 2013 Report from the Economic Committee of the European Steel Association (EUROFER), in 2012 the European Union (EU) automotive sales declined by 8.2 percent year on year, while particularly strong decreases were seen in auto sales in the EU in November and December.
 
During last year, passenger car demand in the European Union fell for the fifth straight year. Since 2008, the EU car market has shrunk from 15.5 million cars to less than 13 million cars in 2012. The UK was the only large market still registering a growth in car sales over the previous year, while in all other large markets demand remained on a downward trend.
 
According to EURFOER, European car exports had been holding up relatively well in the first half of the year, but came under pressure during the second half due to the economic slowdown in key export markets such as Japan, China and India. It was mostly premium-brand car manufacturers in Germany and the UK which benefitted from still relatively robust demand from abroad.
 
Meanwhile, EU car output fell by 3.5 percent in the third quarter of 2012 and is estimated to have contracted by a further six percent in the fourth quarter, both year on year. The total drop in production in 2012 is projected at around 3.5 percent compared to 2011.
 
Regarding the outlook for 2013, the slump in the EU automotive market is expected to continue, with a possible improvement in export demand. However, that will not help the mass producers selling mainly to the depressed southern European markets.
 
For 2013, EUROFER foresees that the total automotive output in the EU will decrease by around two percent, while forecasts for 2014 indicate a mild rebound in EU vehicle demand - supported by an improving economic and financial framework - setting the stage for a moderate increase in automotive production, currently forecast at around 3.5 percent year on year.