European Car Market was down 4.6% in October 2012: UK was strong.

In the Q3 2012, the EU27 GDP was up only 0.1% (Euro currency area was down 0.1%) the lowest level since 2009. In spite of ECB interest rate is at 0.75%, inflation rate in October was at 2.6%, down 0.8 points of share from last year confirming the weak internal demand in consumers good.

The euro crisis has eased since July, when Mario Draghi, president of the European Central Bank (ECB), announced ECB decision to do “whatever it takes” to save the currency. Sovereign debt yields in the troubled economies on the southern and western periphery of the 17-country euro zone have fallen sharply since the ECB made a commitment (subject to strict conditions) to buy without limit short-term government bonds of countries that apply for and get help from the euro area’s main rescue fund.

Thanks to restrictive economic policies generally applied in all European countries, 2012 is showing improvement in Primary budget balances (before interest). As reported by Eurostat, thanks to the Monti’s actions, Italy surplus will be at 2.5%, the best in Europe, ahead of Germany at 2.3%, Hungary at 1.5%, Sweden at 1.0%, Malta at 0.6% and Belgium at 0.5%.

The situation looks terrible in Spain, where the deficit will be at 5.0%, Ireland at -4.4%, Slovakia at – 3.1% and UK at -3.0%.

However, considering the cost of interest, only Sweden will close the year in surplus. Germany, Finland, Estonia, Latvia and Bulgaria will have a deficit between 0 and -1.9%. In the worst positions there are countries with a deficit above 6.0%, where further restrictive policies are necessary in short terms. They are Spain, UK, Greece and Ireland.

In this negative economic environment, the European car market in October dropped less than expected, thanks to the recovery of German market, flat from last year, and the United Kingdom market momentum, with the best year-on-year increase this year.

Looking at October data by country, we point out as focus2move released a report for almost each of them and you can read the detailed report just clicking over the country name:

Germany, after reporting a third quarter drop of 7%, in October recovered posting 259.529 sales, flat from last year. Year-to-date sales were 2.6 million, down 2% from last year. Germany accounts 24% of total European market and was the world’ 5th market.

Great Britain car market momentum is continuing in spite of a negative trend of internal economy. October sales were 151.252, up 12%, the best year-on-year performance in the 2012. Year-to-date, UK was the world’s 8th car market with 1.77 million sales, up 5% from last year.

France posted 162.335 sales, down 8%. Year-to-date sales were 1.59 million, down 13%. Next month’s perspectives are particularly negative due to expected deeper economy recession.

Italy car market slump was unrested in the last 14th month, while in October sales at 116.785 were down only 12%, the lowest decline this year.

Spain after the September VAT increase, the Spanish government introduced a 5 months scrap incentives scheme, supporting vehicle sales with an over 12 years old scrap. Introduced on October 16th, the incentive will end in March 2013. No effect on October sales, when market dropped 22%, with 44.873 sales. Year-to-date sales were 600.000. down 12%.

Netherlands car market was 26.896, down 39%, the worst month of the year. Ten months sales were 455.990, down 9%. This was the world’s 22nd car market.

Belgium market posted 41.846 sales, down only 1%, after a double digit decline in the previous 3 quarters. Year-to-date sales were 425.579, down 11%. Belgium is the world’s 25th market, one position down.

In the table below, all the European countries listed by size:

Rank

 

Oct

Ytd Oct

Q1

Q2

Q3

Oct

Ytd Oct

1

Germany

259.529

2.618.327

1%

0%

-7%

0%

-2%

2

United Kingdom

151.252

1.771.861

1%

5%

8%

12%

5%

3

France

162.335

1.593.855

-22%

-6%

-12%

-8%

-13%

4

Italy

116.875

1.203.022

-21%

-18%

-23%

-12%

-20%

5

Spain

44.873

600.231

-2%

-14%

-18%

-22%

-12%

6

Netherlands

26.896

455.990

-8%

11%

-23%

-39%

-9%

7

Belgium

41.846

428.579

-13%

-13%

-11%

-1%

-11%

8

Austria

26.322

293.212

1%

-2%

-7%

-9%

-3%

9

Switzerland

26.555

272.071

9%

15%

-8%

-2%

5%

10

Poland

22.146

229.174

13%

2%

-9%

-2%

2%

11

Sweden

24.028

227.739

-3%

-14%

-13%

-4%

-10%

12

Czech Rep.

15.963

147.022

4%

10%

-6%

7%

3%

13

Denmark

15.216

143.715

1%

-8%

12%

23%

7%

14

Norway

12.413

116.612

3%

0%

1%

8%

2%

15

Finland

8.182

97.039

34%

-46%

-24%

-19%

-12%

16

Portugal

7.388

81.820

-48%

-35%

-33%

-19%

-38%

17

Ireland

1.661

78.433

-5%

-29%

-1%

6%

-12%

18

Slovakia

4.796

58.640

6%

-4%

24%

-17%

5%

19

Romania

6.782

55.910

44%

-12%

-35%

-13%

-12%

20

Greece

5.111

50.646

-32%

-49%

-45%

2%

-40%

21

Luxembourg

4.454

43.545

1%

0%

-5%

14%

0%

22

Hungary

4.047

43.364

22%

18%

9%

16%

16%

23

Slovenia

3.738

42.445

-14%

-14%

-23%

-18%

-17%

24

Bulgaria

1.512

16.170

1%

20%

-14%

-13%

1%

25

Estonia

1.474

14.788

24%

15%

13%

10%

16%

26

Lithuania

1.190

10.380

0%

-12%

-10%

1%

-7%

27

Cyprus

795

9.622

-20%

-23%

-16%

-32%

-21%

28

Latvia

1.001

8.996

31%

42%

0%

19%

22%

29

Iceland

519

6.890

101%

50%

48%

63%

57%

As far as single brand performance, please read the reports we are dedicating to them, called “Europe Car Market by brand in October 2012”.

To be updated over this and other global countries, please subscribe to our free newsletter. Just click here. Would you need our help, data or consulting over this country or subject, please mail at info@focus2move.com.

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