Italy January. Fiat at Record low market share, first time ever below 15%

Italian Autos Market started the new year on the wrong foot, down 7.8% in January with sales at 165.536. Fiat kept the fall hitting a record low as market share, first time ever below the 15%. Lancia was back in Top 10 while Volkswagen T-Roc boomed +306.7%.

Economic Environment

Italian economy remained quite weak in the fourth quarter of last year, following a third quarter in which shrinking domestic demand led the economy to contract for the first time in over three years. After a mediocre showing in October, industrial production contracted sharply in November, in line with that seen across the Euro area.

Moreover, the manufacturing PMI remained in contractionary terrain and business confidence deteriorated throughout the quarter, signaling subdued private-sector activity. Meanwhile, a worsening economic outlook weighed on consumer confidence in Q4, which, together with higher unemployment in October-November, suggest protracted weakness in consumer spending.

Market Trend

Italian vehicles market fell down in the period 2008-2011 hitting a thirty years record low, before starting to recover. From 2012, the car passenger’s volume grew up from 1.4 million in the 2012 to 1.8 million in the 2016 and finally at 1.964.000 in the 2017, when the total light vehicles figures hit the 2.14 million units.

The market long recovery is ended in the 2018, considering the car park density in Italy is the highest in Europe and within the top 5 worldwide.

Data released by the Italian Minister of Transportation reported that the market has ended with 1.918.526 sales. The steady growth of past years has stopped, with a decline of 2.6% this year. The deadline of September 1st for introduction of WLTP emission standard, moved up and down the registrations data in single Q3 months, but not as in other EU countries.

In January the market started the year on the wrong foot, losing 7.8% from the previous year, with registrations at 165.536.

Market Outlook

Having recovered the 1.8-1.9 million level, the mature Italian market has now at the highest level, still far from the record of 2.4 million hit over a decade ago, which looks not been achievable in the next future. During the 2019-2025 the market will mirror the difficulties of the country, which has lost steam in terms of development, growth, expectations, hope in the future and will marginally benefit from the evolution of technology and environmental rules.

Being interested to know more, give a look at this updated research. Clicking on the picture, you can see contents.

Competitive Arena

The market has been always heavily conditioned by the strategy of Fiat Group, now FCA, which in the ’80 and ’90 had firmly stopped the start-up of foreign industrial facilities, when Japanese brands were looking for South European location to produce. Then, in more recent years, FCA has almost left the country, with just 800.000 vehicles produced locally (near the half for export).

As far as sales, FCA has controlled always a near 30% of share, also with dumping strategies. In the last months a surprising strategy is in place and thanks to the success of Jeep models, FCA is shifting sales from Fiat brand to Jeep, a more profitable “premium” brand.

That’s the reason of the decline of Fiat, still market leader, of course, but with a share now even below 15%. Indeed, Fiat sold 24.445 cars (-28.8%).

In second place there is Volkswagen with 14.865 sales with a double-digit gain – up 10.5% – followed by Peugeot, with 11.346 (+2.2%) and Ford with 11.152 (-10.5%).

In fifth place Opel, at the best place in years, with 9.638 (+11.6%) followed by Citroen with 8.959 (-0.6%), Renault with 8.213 (-16.2%), Toyota with 8.100 (-1.4%), Dacia up 22.9% with 7.728 units and Lancia, reaching the 10th place, with 6.606 (+55.4%).

As far as best selling models, the Fiat Panda is on top of the ranking, with 14.638 sales (+27.1%) and is followed by the Lancia Ypsilon – up 5 spots – with 6.606 (+55.4%), the Citroen C3 with 4.216 (-12.7%), the Volkswagen T-Roc with 4.137 – breaking the record in Italy – (+306.8%) and the Toyota Yaris with 4.112 (+9.9%).

To see the full best-selling models ranking report for Italy, please refer to the specific article here.

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