Click to Enlarge.
In December 2019, EU passenger car demand grew for the fourth month in a row (+21.7%), marking the highest December total on record to date. However, most of this was a statistical anomaly not caused by real growth. This was largely the result of a low base of comparison, as registrations fell by 8.4% in December 2018.
There were significant market interventions in France (+27.7%) and Sweden (+109.3%), as both countries announced large changes to the “bonus-malus” (negative incentives for poor performance) component of CO2-based taxation for 2020. The Netherlands (+113.9%) decided to increase taxation of electric company cars from 4% to 8% from January 2020. As a result, all EU countries – including the five big markets – posted solid growth rates in December.
However, for the entire year of 2019 growth was a paltry +1.2% across the European Union, reaching more than 15.3 million units in total and marking the sixth consecutive year of growth. The year started weak due to the lasting impact of the introduction of the WLTP test in September 2018, which showed that there was significant cheating on emissions compliance by automakers, and diesels in particular were dirtier than disclosed. The final quarter of 2019, and December in particular, pushed the full-year performance of the EU market into slightly positive territory.
Looking at the five major EU markets, Germany (+5.0%) recorded the largest increase last year, followed by France (+1.9%) and Italy (+0.3%). By contrast, both Spain (-4.8%) and the United Kingdom (-2.4%) saw demand fall in 2019.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
EU Passenger Car Registrations Barely Up in 2019
Click to Enlarge.
In December 2019, EU passenger car demand grew for the fourth month in a row (+21.7%), marking the highest December total on record to date. However, most of this was a statistical anomaly not caused by real growth. This was largely the result of a low base of comparison, as registrations fell by 8.4% in December 2018.
There were significant market interventions in France (+27.7%) and Sweden (+109.3%), as both countries announced large changes to the “bonus-malus” (negative incentives for poor performance) component of CO2-based taxation for 2020. The Netherlands (+113.9%) decided to increase taxation of electric company cars from 4% to 8% from January 2020. As a result, all EU countries – including the five big markets – posted solid growth rates in December.
However, for the entire year of 2019 growth was a paltry +1.2% across the European Union, reaching more than 15.3 million units in total and marking the sixth consecutive year of growth. The year started weak due to the lasting impact of the introduction of the WLTP test in September 2018, which showed that there was significant cheating on emissions compliance by automakers, and diesels in particular were dirtier than disclosed. The final quarter of 2019, and December in particular, pushed the full-year performance of the EU market into slightly positive territory.
Looking at the five major EU markets, Germany (+5.0%) recorded the largest increase last year, followed by France (+1.9%) and Italy (+0.3%). By contrast, both Spain (-4.8%) and the United Kingdom (-2.4%) saw demand fall in 2019.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.