According to ACEA, the European Automobile Manufacturers’ Association, the EU car market is expected to shrink by over a quarter compared to pre-pandemic 2019 levels.

ACEA recently published it is expected for car market to shrink by over a quarter compared to 2019, while a slight YoY decline is expected. Consequently, a new policy framework that enables the market both to recover and make the shift to zero-emission is urgently needed.

This new policy framework should include greater resilience in Europe’s supply chains, an act that ensures strategic access to the raw materials needed for e-mobility, and an accelerated roll-out of charging infrastructure, said ACEA President and CEO of BMW. As the coronavirus pandemic, semiconductor supply shortage and war in Ukraine heavily impacted prices and availability of energy – the interconnected consequences were felt.

Eight months into 2022, overall volumes decreased by almost 12% to reach some 6 million new cars sold. So far, the market was only constrained on the supply side as ongoing component shortages constrained production volumes. However, demand may also suffer over the coming months due to inflation and fears of recession.

Nevertheless, despite the contracting market and pressure from inflation and energy costs, the automobile industry continues to invest massively in R&D and in the skills and technologies driving the green and digital transition, said ACEA’s new Director General.

EU Car Sales

Source: ACEA, InterCapital Research