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The Western Europe passenger vehicle (PV) selling rate dropped in July, at 11.2 million units/year, returning to the levels seen pre-June. PV registrations fell 0.2% YoY to 916,000 units.*
“Following an improvement in the selling rate in June, Western Europe returned to the more subdued levels last month. There is a combination of headwinds to market activity that look unlikely to ease significantly anytime soon. Interest rates remain high, even though first moves to loosen monetary policy have now been made by the ECB and the Bank of England.
“Vehicle pricing is still elevated – despite the supply constraints that caused the sharp uptick in vehicle prices in recent years having faded – and does not show signs of a major downward revision in the near-term. Meanwhile, the BEV market is also losing momentum, said the GlobalData European Light Vehicle Sales Forecasting Team.**
GlobalData Observations and Opinions
- The German PV market registered 238,000 units in July, a 2.1% decrease YoY. The selling rate slipped to 2.72 million units/year as EV sales continued to struggle. Total YTD sales reached 1.71 million units.
- Italy’s PV market slowed down in July after a double-digit increase in June. 124,000 units were registered, resulting in a 4.7% increase YoY. The selling rate declined to 1.55 million units/year — the strong result in June was hard to replicate as much of the Ecobonus funds had been exhausted shortly after it was implemented.
- The French PV market registered 126,000 units in July, a 2.3% decline YoY. The selling rate grew slightly to 1.65 million units/year. The ending of EV incentives like the 2024 social leasing program and limitations to the eco-bonus likely brought sales forward and the market is currently somewhat subdued.
- The UK PV market registered 148,000 units in July, a 2.5% increase YoY. The selling rate accelerated to 2.14 million units/year. Following previous trends, the fleet sector continues to drive sales in the market while private demand continues to fall. This decline in private demand can be partially attributed to the increased popularity of salary sacrifice purchasing.
- The Spanish PV market registered 84,000 units in July, a 3.4%improvement YoY though the selling rate fell to 862,000 units/year. An increase in promotional efforts by distributors helped push private channel sales higher.
“Even though YTD sales are up 3.3%, we now expect most of this to unwind over the remainder of the year given the general weakness we have being seeing in selling rates recently,” said the GlobalData* European Light Vehicle Sales Forecasting Team. “We now forecast the full year result to only just eclipse 2023,” said GlobalData. “Monetary policy loosening and lowering vehicle prices should eventually support improved market activity though this will be more evident in 2025. Geopolitical conflicts, as well as political and economic uncertainty provide downside risk.”
*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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Western European Passenger Car Sales Down in July
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The Western Europe passenger vehicle (PV) selling rate dropped in July, at 11.2 million units/year, returning to the levels seen pre-June. PV registrations fell 0.2% YoY to 916,000 units.*
“Following an improvement in the selling rate in June, Western Europe returned to the more subdued levels last month. There is a combination of headwinds to market activity that look unlikely to ease significantly anytime soon. Interest rates remain high, even though first moves to loosen monetary policy have now been made by the ECB and the Bank of England.
“Vehicle pricing is still elevated – despite the supply constraints that caused the sharp uptick in vehicle prices in recent years having faded – and does not show signs of a major downward revision in the near-term. Meanwhile, the BEV market is also losing momentum, said the GlobalData European Light Vehicle Sales Forecasting Team.**
GlobalData Observations and Opinions
“Even though YTD sales are up 3.3%, we now expect most of this to unwind over the remainder of the year given the general weakness we have being seeing in selling rates recently,” said the GlobalData* European Light Vehicle Sales Forecasting Team. “We now forecast the full year result to only just eclipse 2023,” said GlobalData. “Monetary policy loosening and lowering vehicle prices should eventually support improved market activity though this will be more evident in 2025. Geopolitical conflicts, as well as political and economic uncertainty provide downside risk.”
*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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