Europe’s new-car market grew in August for the first time in 13 months, though the respite may be short-lived as record inflation and an unprecedented energy crisis threaten to put off buyers.
The European Automobile Manufacturers’ Association said last month that the number of vehicles registered increased. One of the best performers was Germany’s Mercedes-Benz AG.
Some supply-chain constraints, such as the lack of semiconductors, are starting to ease, which is good news for carmakers. Sales forecasts are clouded by inflation and the global economy. Poor year- earlier performance compares to last month, which is still below pre-pandemic levels.
Europe passenger car sales increased for the first time in over a year.
European automobile manufacturers association
According to a note this week, high inflation, rising interest rates and waning consumer confidence may challenge underlying demand in the years to come.
Forecasting vehicle purchases is difficult as consumers worry about rising energy bills and the risk of rolling blackouts. Industrial consumers in Germany have been urged to cut their gas use. One of the German car industry’s biggest suppliers is cutting production due to high energy costs.
The chemical giant has cut European production.
High vehicle prices may be capped by rising interest rates and the cost of energy. The European Central Bank raised borrowing costs last week and are expected to do so again in the near future.
In Germany, France and Spain, the number of registered people grew.
Last month and year-to-date, how major car companies performed in Europe.
The European automobile manufacturers’ association.