Tuesday, October 22, 2024

Europe’s car sales slump

Thanks for reading Hyperdrive, Bloomberg's newsletter on the future of the auto world. Read today's featured story online here.Car sales in

Thanks for reading Hyperdrive, Bloomberg's newsletter on the future of the auto world. Read today's featured story online here.

Back-to-Back Drops

Car sales in Europe fell in September for the first consecutive monthly decline in more than two years as the region's economy continued to stagnate and consumers trimmed spending.

New-car registrations fell 4.2% compared to a year ago, to 1.12 million units, the European Automobile Manufacturers' Association said Tuesday. Gains in electric-vehicle sales weren't enough to offset declines for combustion-engine models.

European automakers have struggled to improve sales in their home market as a protracted downturn and higher interest rates cut into spending. Stellantis, the owner of brands including Fiat and Peugeot, posted one of the biggest drops, with registrations plummeting 26% in the region.

"The industry remains in crisis mode," Constantin Gall, EY's mobility lead for western Europe, said in a note. "There is no positive impetus towards the end of the year — the economy is weakening, the considerable geopolitical tensions are not easing and are causing uncertainty among both private and commercial customers."

While sales picked up slightly in the UK and Spain, they fell in Germany, France and Italy, pulling down total deliveries across the region.

Sales of EVs bounced back in September, a welcome sign for the industry that's seen demand for fully electric cars decline after governments pulled subsidies last year.

EV registrations jumped 24% in the UK, where carmakers are heavily discounting to try to comply with the government's zero-emissions vehicle sales mandate. In Germany, where the government the government may reintroduce incentives ahead of elections next year, EV sales increased 8.7%.

Year-to-date, EV registrations in the region are still down 2.6%. The outlook has been complicated by planned tariffs on Chinese-made EVs of as high as 45%, which are scheduled to take effect in the coming weeks. The EU and China have pledged to work toward an alternative agreement that would avoid the need for levies, and German Chancellor Olaf Scholz reiterated his opposition to the tariffs on Monday.

With consumers balking at the high costs of owning EVs, Europe's biggest automakers are now trying to revive sales with lower-cost models. Renault showcased its new €25,000 ($27,053) R5 last week, while Stellantis started shipping its €23,300 Citroën ë-C3 city car in mid-September.

Volkswagen, the region's biggest automaker, is weighing unprecedented factory closures in Germany due to falling demand. Its sports-car brand Porsche and rival Mercedes have dialed back their EV ambitions in recent months, citing slower-than-expected momentum for plug-in models.

A Europe-wide EV downturn increases the risk that manufacturers including VW, Stellantis and Renault will end up having to pay billions of euros in fines if they fail to meet stricter fleet-emission rules set to kick in next year.

— By Wilfried Eckl-Dorna 

    News Briefs

Before You Go

Tesla's robotaxi presentation included a slide with an AI-generated image similar to a scene from Blade Runner 2049. Source: X/Tesla

Hollywood filmmaker Alcon Entertainment is suing Elon Musk, saying Tesla used imagery inspired by the 2017 movie Blade Runner 2049 at a recent event even after permission was denied. The production company filed a lawsuit accusing Musk of copyright infringement, saying it specifically declined to grant permission to use the images. Alcon also alleges Tesla didn't reach out for permission until the day of the event, which was held on Oct. 10. Musk, Tesla and Warner Brothers Discovery, which hosted the event in a studio lot, are listed as defendants and didn't respond to requests for comment on the suit.

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