With sales jumping almost 15 percent in June, data could easily be seen as positive when it comes to the feeble European market recovery – but there are deep issues to be uncovered still.
As the figures have been carefully judged, it could become apparent that misleading factors were in effect and the turnaround after six years of plummeting deliveries might come to an abrupt halt as the continent becomes ill worried with the Grexit. According to the European Car Makers Association, or ACEA, revealed last month automotive registrations across the continent jumped almost 14.6 per cent in the Western European region to 1.3 million, with the six months total now up 8.2 percent at 6.9 million units. But the sales figures were heavily distorted because most countries had additional selling days last month compared to June 2014. “Private demand looks close to saturation point. Buyer fatigue seems to be setting in,” comments IHS Automotive analyst Colin Couchman. “The deal that appears to have been reached over Greece’s debt restructuring appears to make a Greek Eurozone exit look less likely but the level of uncertainty and risk has increased substantially in the recent week,” IHS Automotive said in a recent report.
The turmoil has affected deeply consumer confidence in the zone and the situation could put car sales into reverse. Auto sales in the western part only started picking up last year from the deep fall seen in the days after the 2008 economic crisis. The European market also has its underlying issues – such as self-registrations (dealers buy the cars and then sell them off at second hand prices) and massive incentive wars between automakers that lower profits.