Statistical Quirks Show September EU Car Sales up 10%

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During September 2022, new passenger car registrations in the European Union rose by 9.6%, marking the second consecutive month of growth this year according to the latest data from ACEA*.

This is really a mathematical quirk since the “increase” came from a low base of comparison from 2021, when the semiconductor shortage hindered vehicle production. It doesn’t reflect underlying demand or consumer sentiment. The four largest EU markets, Germany and Spain recorded double-digit gains (+14.1% and +12.7% respectively), while France (+5.5%) and Italy (+5.4%) showed modest rates of growth. For a more nuanced look see LMC Automotive. (Autoinformed.com on: Western Europe Car Sales Plunge in September)

This is also an economic calamity because 12.7 million Europeans work in the auto industry, directly or indirectly, comprising 6.6% of all EU jobs. Moreover, 11.5% of EU manufacturing jobs ,~3.5 million, are in the automotive sector. Motor vehicles are responsible for €398.4 billion of tax revenue for governments within key European markets.

During the first three quarters of 2022, the EU passenger car market contracted by 9.9% to 6,784,090 units, despite positive results recorded in the last two months. This was reflected in most countries’ performance, with all the region’s major markets facing losses over this nine-month period. Italy saw the steepest decline (-16.3%), followed by France (‑11.8%), Germany (-7.4%) and Spain (-7.4%), according to ACEA.

*The European Automobile Manufacturers’ Association (ACEA) represents the 16 major Europe-based car, van, truck and bus makers: BMW Group, DAF Trucks, Daimler Truck, Ferrari, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Iveco Group, Jaguar Land Rover, Mercedes-Benz, Renault Group, Stellantis, Toyota Motor Europe, Volkswagen Group, Volvo Cars, and Volvo Group.