Click chart for more information.
Well, the party’s over. The Western European passenger vehicles selling rate (SAAR) fell from 13.1 million units annually in December to 10.7 million units/year in January 2023, according to the latest analysis published by the respected LMC consultancy.* LMC noted that the 2022 year‐end had a stronger selling rate in part due to legislation changes pulling forward sales. However, in monthly registration terms, January 2023 was up 9.8% year‐on‐year (YoY), at 810k units.
“Vehicle supply constraints continues to persist into 2023 for West European countries as the demand for vehicles still outweighs supply. However, our forecast assumes that the production bottlenecks will ease during 2023, resulting in YoY growth in registrations for the year. That said, the market is expected to remain some way down on 2019 levels. From a macroeconomic point of view, West European countries are experiencing recessionary conditions, with higher prices and interest rates squeezing real household incomes. Although a clear downside risk to the outlook comes in the form of a more pronounced macroeconomic decline, order backlogs provide some cushion to this,” LMC said.
ACEA’s forecast for new car sales this year said: “Despite the many uncertainties ahead, the market should start embarking on recovery process in 2023,” explained ACEA Director General, Sigrid de Vries. “We expect around 9.8 million new cars to be sold across the region this year, up 5% from 2022. However this remains 25% below the 2019 pre-crisis levels, showing that we are still in a fragile situation. In this context, it is of all the more importance that our industry strengthens its position on the global stage,” according to the Association of European Automotive Manufacturers.
LMC put the German passenger vehicle selling rate for January 2023 below 2.6 million units/year, from the robust 4.2 million units/year rate recorded the previous month. The UK passenger vehicle selling rate increased to 2.1 million units/year from 1.9 million units/year in December. The French selling rate fell marginally from 1.7 million units in December to 1.6 million units/year in January 2023. The Italian passenger vehicle selling rate fell sharply in January 2023 to 1.4 million units/year, an end to the four‐month run of growing selling rates at the end of 2022. Spain’s selling rate for January stood at 900k units/year, in line with December 2022 and a little lower than November.
*LMC Automotive – a GlobalData Company
LMC Automotive is a leading independent and exclusively automotive focused provider of global forecasting and market intelligence in the areas of vehicle sales, production, powertrains and electrification. The company’s global client base includes car and truck makers, component manufacturers and suppliers, financial, logistics and government institutions. LMC Automotive is part of the LMC group, as is J.D. Power. LMC is also the world’s leading economic and business consultancy for the agribusiness sector. For more information about LMC Automotive, visit www.lmc-auto.com. or contact LMC directly at forecasting@lmc-auto.com.
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.
January 2023 Western EU Passenger Vehicles Sales Plunge
Click chart for more information.
Well, the party’s over. The Western European passenger vehicles selling rate (SAAR) fell from 13.1 million units annually in December to 10.7 million units/year in January 2023, according to the latest analysis published by the respected LMC consultancy.* LMC noted that the 2022 year‐end had a stronger selling rate in part due to legislation changes pulling forward sales. However, in monthly registration terms, January 2023 was up 9.8% year‐on‐year (YoY), at 810k units.
“Vehicle supply constraints continues to persist into 2023 for West European countries as the demand for vehicles still outweighs supply. However, our forecast assumes that the production bottlenecks will ease during 2023, resulting in YoY growth in registrations for the year. That said, the market is expected to remain some way down on 2019 levels. From a macroeconomic point of view, West European countries are experiencing recessionary conditions, with higher prices and interest rates squeezing real household incomes. Although a clear downside risk to the outlook comes in the form of a more pronounced macroeconomic decline, order backlogs provide some cushion to this,” LMC said.
ACEA’s forecast for new car sales this year said: “Despite the many uncertainties ahead, the market should start embarking on recovery process in 2023,” explained ACEA Director General, Sigrid de Vries. “We expect around 9.8 million new cars to be sold across the region this year, up 5% from 2022. However this remains 25% below the 2019 pre-crisis levels, showing that we are still in a fragile situation. In this context, it is of all the more importance that our industry strengthens its position on the global stage,” according to the Association of European Automotive Manufacturers.
LMC put the German passenger vehicle selling rate for January 2023 below 2.6 million units/year, from the robust 4.2 million units/year rate recorded the previous month. The UK passenger vehicle selling rate increased to 2.1 million units/year from 1.9 million units/year in December. The French selling rate fell marginally from 1.7 million units in December to 1.6 million units/year in January 2023. The Italian passenger vehicle selling rate fell sharply in January 2023 to 1.4 million units/year, an end to the four‐month run of growing selling rates at the end of 2022. Spain’s selling rate for January stood at 900k units/year, in line with December 2022 and a little lower than November.
*LMC Automotive – a GlobalData Company
LMC Automotive is a leading independent and exclusively automotive focused provider of global forecasting and market intelligence in the areas of vehicle sales, production, powertrains and electrification. The company’s global client base includes car and truck makers, component manufacturers and suppliers, financial, logistics and government institutions. LMC Automotive is part of the LMC group, as is J.D. Power. LMC is also the world’s leading economic and business consultancy for the agribusiness sector. For more information about LMC Automotive, visit www.lmc-auto.com. or contact LMC directly at forecasting@lmc-auto.com.
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.