The European Automobile Manufacturers’ Association (ACEA) projects sales of new cars in 2020 to drop by 25pc compared with 2019 due to the impact of the pandemic. The association says that sales will drop by more than three million units to 9.6 million compared with 12.8 million units in 2019.
Eric-Mark Huitema, director-general, ACEA said that purchase incentives and scrappage schemes were urgently required to create demand for new cars. Moreover, he pointed out that political and economic support would be vital from both the EU and member countries to curb further damage to production and employment in the auto sector.
New car sales have dropped 41.5pc between March, when the pandemic hit Europe, and May. The situation is expected to ease in the coming months as restrictions are reduced in a phased manner.
ACEA’s predictions represent the lowest sales of new cars since 2013 when the demand in the auto industry diminished for six years consecutively after the financial crisis in 2008. The 25pc decrease is the largest slump the European market will ever witness.