The number of new car registrations fell by 2% in November. compared to the previous year to 1.06 million piecesmainly due to sharp declines in France and Italy, the European Automobile Manufacturers Association reported on Thursday. One large market in Europe where sales increased was Spain.
Car sales in Europe in November 2024 fell by 2%. /Bloomberg
The European market is suffering
There are many reasons for the decline in sales. One of them is that consumers continue to be under pressure from higher living costs.
In this difficult situation, the largest car manufacturers in Europe, incl Volkswagen and Stellantisare accelerating actions aimed at reducing costs, which is met with strong opposition from trade unions.
There is also a decline in demand for cars one of the reasons for the insolvency of the Swedish battery manufacturer Northvolt AB, which filed for Chapter 11 bankruptcy protection in November.
A slight increase in sales of electric cars
Sales of fully electric cars in Europe increased by 0.9% in November. compared to the previous year, ACEA reported. The growth leader was Great Britain, which continues to support sales of electric cars. As European buyers struggle to warm up to fully electric cars, hybrid registrations are rising. Sales of vehicles powered by internal combustion engines and smaller batteries increased by 16% in November.
Car sales numbers in Europe in November according to manufacturers / Bloomberg
Severe effects of slowdown in the industry
The slowdown in the industry has far-reaching consequences. VW proposes layoffs and unprecedented factory closureswhile Stellantis is trying to recover from a disastrous year that ended this month with the ouster of former CEO Carlos Tavares.
Additionally, manufacturers face billions of euros in fines if they fail to meet tougher European emissions rules that are due to come into force next year.
The crisis also affects sectors cooperating with the automotive industry. In response to falling demand, Robert Bosch GmbH, ZF Friedrichshafen AG and Schaeffler AG want to cut thousands of jobs as the effects of the crisis hit the automotive supply chain. Bosch intends to lay off 5,500 employees.
