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The second wave of COVID-19 across Europe is hitting hard on car sales with a downward trend across markets in the continent.
In October, car sales dropped in Europe’s four largest auto markets even as a second wave of coronavirus cases hit the region.
In Germany, new-car registrations dropped 3.6% in October from a year ago, the country’s Federal Motor Transport Authority said Wednesday. Sales also plunged by more than a fifth in Spain, slumped 10% in France and slipped 0.2% in Italy, an indication that the industry would be unable to maintain the surprise growth seen in September.
The figures signal a troubling future for the auto markets across Europe and the economy in general as much of the month’s vehicle registrations were compiled before governments in several countries re-instituted tighter restrictions on public life to contain the resurgence of Covid-19.
In Britain, Prime Minister Boris Johnson ordered a four-week partial lockdown, with non-essential shops including car dealerships to close from Thursday. France issued similar restrictions last week.
While dealerships remain open in Germany, Chancellor Angela Merkel’s government has imposed a partial shutdown and is urging citizens to stay at home whenever possible. Austria, Greece and Portugal also have expanded limits for November, while Italy is restricting opening hours of businesses.
Peugeot maker PSA Group has canceled plans to add a shift of workers at its Sochaux factory in eastern France because of virus restrictions, saying it’s waiting to see whether its “click and collect” system for orders and deliveries can be put in place to get vehicles to buyers.
Auto sales in France “are set to deteriorate further,” because of the new lockdown, Bloomberg Intelligence analyst Michael Dean wrote in a report. He now expects European car sales to drop by a quarter this year, worse than his earlier forecast for a 20% decline.
Countries including Germany and France earlier this year unveiled measures including state-funded loans and higher purchasing subsidies to backstop the car industry and encourage consumers to buy battery-powered models. While the aid helped bolster sales during the summer months, their effects have waned.
• SOURCE: Washington Post/Gulf News
