The Western Europe passenger car selling rate fell slightly to 12 million units a year in January, according to numbers just released by the respected GlobalData* consultancy, at 901,000 vehicle registrations. Year-over-year (YoY) January grew 10.7% with strong growth in Germany and other major West European countries. However, relative to pre-pandemic January 2019, the passenger vehicle (PV) market is down almost 19%.
“With supply having been a key limiting factor over recent years, 2024 will see the focus return to the health of underlying demand. In this regard, consumers face headwinds such as high interest rates, inflation, and elevated vehicle pricing. However, the latter should ease as a function of greater vehicle supply and further volume recovery is baked into the 2024 outlook. Risks remains, noting the recent Red Sea attacks hitting freight costs, which only increases pressure on the manufacturing cost base,” the GlobalData European Light Vehicle Sales Forecasting Team said.
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GlobalData Observations
- The Western Europe passenger car in 2024 is forecast to reach 12.1 million units, the best year since the pandemic.
- The Germany PV market recorded 214,000 vehicle registrations in January, 19.1% higher YoY. With a selling rate of 3 million units/year, the strong positive YoY growth is due to January being a low base given the fact that Germany brought down some incentives from the start of 2023. The market is still, however, lagging 20% behind January 2019 and domestic demand remains weak.
- The UK PV market registered 143,000 vehicles in January 2024, 8.2% higher YoY, with a selling rate of 2.2 million units/year. The PV market continues to register positive YoY growth, thanks to the fleet side.
- The French PV market started 2024 with 122,000 vehicle registrations in January, 9.2% higher than January. With a selling rate of 1.8 million units/year, the market performed close to expectations as supply constraints become less of an issue.
- The Italian PV market registered 142,000 vehicles in January 2024, 10.6% higher YoY, with the selling rate steady at 1.6 million units/year. Demand in upcoming months may benefit from the new car incentive plan unveiled by the Italian government.
- The Spanish PV market in January 2024 registered 69,000 vehicles, 7.3% higher YoY, with a selling rate of 960,000 units/year — the market performance continues to improve, helped by growth in the rental channel.
*GlobalData
GlobalData says that “4000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.” J.D. Power is also part of GlobalData. Inquiries at: customersuccess.automotive@globaldata.com
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European Passenger Car Sales Soft in January 2024
The Western Europe passenger car selling rate fell slightly to 12 million units a year in January, according to numbers just released by the respected GlobalData* consultancy, at 901,000 vehicle registrations. Year-over-year (YoY) January grew 10.7% with strong growth in Germany and other major West European countries. However, relative to pre-pandemic January 2019, the passenger vehicle (PV) market is down almost 19%.
“With supply having been a key limiting factor over recent years, 2024 will see the focus return to the health of underlying demand. In this regard, consumers face headwinds such as high interest rates, inflation, and elevated vehicle pricing. However, the latter should ease as a function of greater vehicle supply and further volume recovery is baked into the 2024 outlook. Risks remains, noting the recent Red Sea attacks hitting freight costs, which only increases pressure on the manufacturing cost base,” the GlobalData European Light Vehicle Sales Forecasting Team said.
Click for more GlobalData.
GlobalData Observations
*GlobalData
GlobalData says that “4000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology and professional services sectors.” J.D. Power is also part of GlobalData. Inquiries at: customersuccess.automotive@globaldata.com
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