There’s good news and bad news for the European region when it comes to the auto industry’s evolution in 2015: sales are growing, but at a slower pace.
That means that the battered European carmakers, which have just finished a six-year slump that led to deliveries dropping to record lows, can expect the sales to continue to soar – but while they would statistically qualify as making a gradual comeback, they won’t look like doing it. While the average age of vehicles in the region continues to increase, industry insiders expect that pent-up replacement needs would eventually prevail and bring a more solid sales uptick after 2013 figures showed the overall European market dropped to sales not seen in the past two decades.
Analysts on the other hand caution hat while last year’s overall recovery pace was at a 5% increase, forecasts for 2015 are more conservative, putting the sales rise in between 2 and 3 percent. Sales are almost crawling to a halt this year after the market failed to pick up the pace in 2014 due to numerous factors: economic uncertainties in the euro area that derailed a fledgling recovery, coupled with geopolitical tensions in Russia and the Middle East. The previous high levels seen during the debt-fueled years before the economic collapse of 2008-2009 are unlikely to be achieved in the near future, as the market has undergone big shifts – from the increased cost of car ownership to the younger generation preferring to use alternate means of transportation, such as public transport or car sharing services.
Via Automotive News Europe