The downturn in the European auto market is accelerating.
Volkswagen, Mercedes, Aston Martin, and BMW have all cut their financial forecasts in response to the deteriorating conditions. A recently leaked memo from a senior Stellantis executive highlighted increasing concerns over the deepening auto slump. Bloomberg’s latest data shows the downturn continues to worsen.
New figures from the European Automobile Manufacturers’ Association show that new car registrations across Europe in September declined 4.2% compared with the same month one year ago, to 1.12 million units. This was the second consecutive month of declines since mid-summer 2022. Data showed that gains in electric vehicles could not offset the weakness in combustion-engine models.
Constantin Gall, the managing partner at EY for Western European markets, wrote in a note to clients that the European auto market “remains in crisis mode,” adding, “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.”
