Passenger car registrations are expected to drop by 25pc in 2020, according to a revised forecast released by the European Automobile Manufacturers’ Association (ACEA). In January, ACEA had forecast a drop of 2pc in new car registrations.
ACEA, an association of auto industry bodies, expects car sales in the European Union (EU) to fall from 12.8mn units in 2019 to 9.6mn units this year, a drop of more than 3mn units.
The EU market has contracted by 41.5pc between March and May due to the COVID-19 pandemic. The situation is expected to recover to a certain extent in the coming months as lockdown and containment measures are lifted throughout the region.
ACEA’s forecast for 2020 represents the lowest number of new cars sold since 2013 when the auto industry had suffered six consecutive years of decline due to the 2008-09 worldwide financial crisis.