European Car Sales Sank Like a Stone in March; April Not Looking Any Better

Matt Posky
by Matt Posky

The coronavirus pandemic took a sizable bite out of new car registrations in the European Union last month. Volume was down 51.8 percent in March (including the United Kingdom), according to the European Auto Industry Association. While some of the absent vehicles are potentially waiting on official documents to come through after lockdown measures ease, most can be explained by the general lack of demand. Everyone knew last month would be a tough one, with the nations experiencing worst outbreaks likely see the largest sales disparities.

While no country was left unscathed, Reuters reports that Italy performed quite poorly in comparison to its neighbors. As it was the first European nation to report widespread contagion of COVID-19, that’s hardly surprising, and may indicate that its neighbors are about to find themselves in a similarly undesirable situation.

From Reuters:

Sales fell in all EU markets, with Italy — hit particularly hard by the pandemic — reporting the biggest drop of 85.4 [percent], while registrations tumbled by 37.7 [percent] in Germany, 72.2 [percent] in France and 69.3 [percent] in Spain.

Volkswagen Group’s sales decreased by 43.6 [percent] in March, while Renault and PSA Group posted a drop of 63.7 [percent] and 66.9 [percent], respectively.

Sales of cars made by BMW, which was among the few automakers reporting an increase in European sales in the previous months, dropped by 39.7 [percent], while demand for rival Daimler decreased by 40.6 [percent].

While most European countries began shuttering car dealerships and assembly lines in the middle of March, Italians were already stepping up social distancing measures. Italian dealer groups began voluntarily closing shops a week or two before other markets followed suit. At the time, it was assumed March registrations in Italy could be down 85 percent if showrooms didn’t reopen — a premonition that turned out to be spot-on.

Based on contagion reports, Spain looks to be the country taking it on the chin next. Reported coronavirus cases have skyrocketed over the last couple of weeks and, like Italy, the nation has restricted testing to at-risk persons showing symptoms. The country’s Ministry of Health estimates the true number of cases are probably over 15 times higher than the official tally — and they’re already quite high. Presently, Spain is the European nation with the largest number of confirmed cases (188,068), and has a death toll (19,478) that’s probably days away from surpassing Italy.

Germany also has an exceptionally high number of cases (138,369) but its death rate is comparatively low (at just 4,105). Part of that can been attributed to the country enacting comprehensive testing procedures and having a clearer idea where its infections originated. There have also been claims that Germans were simply adhering to social distancing measures better than their neighbors — and had slightly more time to prepare.

In fact, Germany’s numbers may be more representative of what’s actually going on. As test kits are not yet broadly available in most nations, it’s assumed many are mistakenly counting any death that looks like COVID-19 as attributable to the pandemic. However, there’s no way of knowing how large the disparity actually is without more testing, and that will take weeks.

What is certain is that April’s new car registrations probably won’t look any better than they did in March. Already hamstrung by shutdowns enacted in the previous month, much of the automotive industry will remain sequestered until May. We predict European countries nearly across the board showing figures similar to what we’ve already seen in Italy. Fortunately, discussions are in the works on how to restart the global economy. Widespread shutdowns sound like they’re two weeks away from concluding (or beginning to conclude).

Climbing back out of the economic hole we’ve created is presumed to take the entirety of this year, and maybe some of 2021.

[Image: GLF Media/Shutterstock]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Threeer Threeer on Apr 20, 2020

    And 9/10th of these “discussions” have what to do with the sales figures in Europe?

  • Jeff S Jeff S on Apr 20, 2020

    The new car dealers around me are doing everything they can to sell new vehicles including on line sales and no charge door to door delivery within 100 miles. Many advertise that they will pick up your vehicle and deliver it back to you for service. Dealers will be very happy to get your business and it is a good time to buy a new vehicle.

    • Lou_BC Lou_BC on Apr 20, 2020

      @Jeff S - I've been watching the local dealerships and not much is moving in their inventories. I had mentioned the local Ford dealer offering up to 18k off on 2019's. Some discounts have now crept up to 20k. They've put discounts on 2020's up to 12k. I'm inclined to wait and watch a bit longer to see what happens. I'm not in dire need of a new truck but man-oh-man, I've never seen deals this good.

  • Dave Holzman A design award for the Prius?!!! Yes, the Prius is a great looking car, but the visibility is terrible from what I've read, notably Consumer Reports. Bad visibility is a dangerous, and very annoying design flaw.
  • Wjtinfwb I've owned multiple Mustang's, none perfect, all an absolute riot. My '85 GT with a big Holley 4 barrel and factory tube header manifolds was a screaming deal in its day and loved to rev. I replaced it with an '88 5.0 Convertible and added a Supercharger. Speed for days, handling... present. Brakes, ummm. But I couldn't kill it and it embarrassed a lot of much more expensive machinery. A '13 Boss 302 in Gotta Have It Green was a subtle as a sledgehammer, open up the exhaust cut outs and every day was Days of Thunder. I miss them all. They've gotten too expensive and too plush, I think, wish they'd go back to a LX version, ditch all the digital crap, cloth interior and just the Handling package as an add on. Keep it under 40k and give todays kids an alternative to a Civic or WRX.
  • Jpolicke In a communist dictatorship, there isn't much export activity that the government isn't aware of. That being the case, if the PRC wanted to, they could cut the flow of fentanyl down to a trickle. Since that isn't happening, I therefore assume Xi Jinping doesn't want it cut. China needs to feel the consequences for knowingly poisoning other countries' citizens.
  • El scotto Oh, ye nattering nabobs of negativism! Think of countries like restaurants. Our neighbors to the north and south are almost as good and the service is fantastic. They're awfully close to being as good as the US. Oh the Europeans are interesting and quaint but you really only go there a few times a year. Gents, the US is simply the hottest restaurant in town. Have to stand in line to get in? Of course. Can you hand out bribes to get in quicker? Of course. Suppliers and employees? Only the best on a constant basis.Did I mention there is a dress code? We strictly enforce it. Don't like it? Suck it.
  • 1995 SC At least you can still get one. There isn't much for Ford folks to be happy about nowadays, but the existence of the Mustang and the fact that the lessons from back in the 90s when Ford tried to kill it and replace it with the then flavor of the day seem to have been learned (the only lessons they seem to remember) are a win not only for Ford folks but for car people in general. One day my Super Coupe will pop its headgaskets (I know it will...I read it on the Internet). I hope I will still be physically up to dropping the supercharged Terminator Cobra motor into it. in all seriousness, The Mustang is a.win for car guys.
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