According to Italian automakers’ association ANFIA, auto sales in Europe will remain flat in 2013.

So far this year, auto sales in Western Europe have dropped 7.3% to 10.33 million vehicles, according to Brussels-based industry group ACEA. Automakers on the continent are dealing with a sustained slump of the market against the governments’ austerity measures and the backdrop of the euro zone debt crisis. Last month new car sales in Italy fell 20.1% to 106,491 units and 12.3% in October to 116,875 units.

“I do not see the car sales situation changing much next year,” ANFIA chairman Roberto Vavassori said when asked for a market forecast. “That is the trend. In Italy, I think we could see a small contraction.”

Morgan Stanley analyst Stuart Pearson said that Europe is at ‘Peak Car,’ which is the point of saturation of vehicle usage and ownership. This means that we shouldn’t expect a recovery in this market in the next 10 years. LMC Auto analyst Jonathon Poskitt is more optimistic regarding this issue and says that Europe governments might offers a cash-for-clunkers bailout scheme.

“Scrappage schemes would still fail to tackle the more fundamental issues of over-capacity in the industry and ongoing economic headwinds, and these schemes may be politically harder to justify this time around. One cannot rule out wider adoption of such schemes just yet though,” Poskitt said.


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