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Car Sales in Europe Jumped 11% in July, 30% in August

Registrations of new passenger vehicles across Europe expanded strongly over the past two months, trade group ACEA reports.

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Registrations of new passenger vehicles across Europe expanded strongly over the past two months, trade group ACEA reports.

Retail sales rose 10% to 1.31 million units in July and jumped 30% to 1.17 million cars and light trucks in August. Volume through the first eight months of 2018 expanded 6% to 11.18 million vehicles.

The summer sales surge was driven by industry-wide discounts as European carmakers cleared out inventories ahead of a switch to vehicles tuned to meet tougher WLTP (world harmonized light vehicle procedure) emission standards.

In July, most of Europe’s mainstream carmakers posted dramatic year-on-year gains. Sales surged for Volkswagen Group (+24% to 360,800 units), Renault (+15% to 135,900) and Fiat Chrysler Automobiles (+17% to 92,800). Ford saw sales advance 2% to 76,000 vehicles.

PSA’s July sales soared 69% to 117,700 units, in part because of the contribution of Opel/Vauxhall, which was acquired in August 2017. PSA’s volume rose 12% to 131,700 units when those brands are excluded.

Luxury carmakers saw sales decline in July. Mercedes-Benz plunged 19% to 59,400 units, and BMW fell 3% to 55,800. Deliveries by Jaguar Land Rover shrank 21% to 12,000 units.

ACEA’s results for August show strong gains for all mass market carmakers. Sales climbed VW Group (+38% to 275,500 units), PSA (+13% to 141,700), Renault (+61% to 125,300), FCA (+35% to 67,000) and Ford (+15% to 52,700).

Among luxury marques, August sales improved for BMW (+5% to 47,800) and Jaguar Land Rover (+21% to 8,900). But deliveries continued to shrink for Mercedes (-6% to 51,300).

Sales of Asian brands that are members of ACEA (Toyota, Nissan, Hyundai, Kia and Honda) advanced 7% to 208,900 units in July and 23% to 148,700 vehicles in August.

Gardner Business Media - Strategic Business Solutions