Europe’s automakers warned they are likely headed for another year of shrinking sales and called for policymakers to step up their support of the industry struggling to recover from the pandemic.
Passenger car sales in the EU will probably drop 1 percent to 9.6 million this year, industry group ACEA said.
"Compared to the 2019 pre-pandemic figures, this represents a drop of 26 percent in car sales in the space of just three years," ACEA said in a statement.
While that outlook suggests there may be some recovery in the closing monthsof the year -- registrations were down almost 12 percent through August -- the lobby group does not expect enough of a bounce back to stick with its forecast toward the beginning of the year for a bit of growth.
A pile-up of setbacks -- including Brexit, semiconductor shortages, the war in Ukraine and the resulting energy crisis -- have contributed to the industry struggling to get back to pre-pandemic volumes, Oliver Zipse, ACEA’s president and CEO of BMW, said in the statement.
Until recently, automakers’ concerns were about constraints on production limiting vehicle supply. Now, runaway inflation and fears of recession are weighing on demand.
"To ensure a return to growth -- with an even greater share of electric vehicle sales so climate targets can be met -- we urgently need the right framework conditions to be put in place," Zipse said.
"These include greater resilience in Europe’s supply chains, an EU Critical Raw Materials Act that ensures strategic access to the raw materials needed for e-mobility, and an accelerated roll-out of charging infrastructure." Zipse said.
