The European automotive industry is likely to bounce back and achieve normal levels of car sales in June on the back of government’s impetus to support auto sector, according to media reports.
La Plateforme Automobile data reveals that vehicle registration has gained momentum and the figures are close to the prior year figures. The group is yet to release its monthly figures on July 1, Marc Mortureux, the group’s director general said.
The demand for automobiles has witnessed an uptick and reached pre-COVID levels with 60pc of production, compared to the 40pc production rate at the end of last month. The European industry gross sales across the area are likely to drop by 25pc in the year 2020, the highest exponential drop on record since 2013.
Europe’s auto registrations fell by 57pc in May, showing an improvement from April’s 78pc decrease. French passenger car registrations fell by 50pc in May higher than the 89pc drop in the prior month.
President Emmanuel Macron has announced a slew of measures last month aimed at reviving France’s car industry. The plan comprises of incentives effective June 1 for the purchase of electric cars and cash-for-clunkers plan to encourage consumers to trade older vehicles, more polluting cars for 200,000 new vehicles.