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Tag Archives: Car Sales

Chart: European Union Passenger Car Registrations Continued Their Downward Trend in June 2022

With 886,510 units registered, this is the lowest month of June on record (in terms of volume) since 1996.

Source : ACEA

Europe Car Sales Slump 20% in April, Dashing Hopes for Recovery

Wilfried Eckl-Dorna wrote . . . . . . . . .

Europe’s new-vehicle sales shrank for a 10th month in a row as the industry remains mired in supply-chain crises that are stoking record inflation and threatening to put off car buyers.

Registrations fell 20% to 830,447 vehicles in April, the European Automobile Manufacturers’ Association said Wednesday, the steepest decline this year. Stellantis NV, the carmaker formed from the merger of PSA Group and Fiat Chrysler, was the hardest-hit among major manufacturers with a 31% drop.

Issues constraining production — chief among them being the global semiconductor shortage — have led forecasters at LMC Automotive to cut their estimate for Western European passenger-car sales each of the last four months. They now expect annual deliveries to shrink 6% this year to less than 10 million units. Back in January, LMC was calling for almost 9% growth. Carmakers have managed to make up for lost volume by charging higher prices, though it’s unclear how much higher they can go.

“Global supply issues show no significant signs of easing, while underlying demand prospects are eroding, too,” LMC wrote in a report this month. “Households will experience a serious squeeze to real income this year. Supply issues do remain the key determinant for registrations for now.”

Across Europe’s biggest markets, Italy posted the sharpest decline, contracting by a third, while registrations in Germany and France dropped by more than a fifth.

The dearth of chips holding automakers back is lasting longer than expected and forcing some buyers to wait 18 months for certain in-demand models. Volkswagen AG Chief Executive Officer Herbert Diess said last week the company is completely sold out with respect to electric cars this year in the U.S. and Europe.

VW’s Diess and Mercedes-Benz Group AG CEO Ola Kallenius are hoping to see semiconductor supply improve in the second half of this year. But hopes for recovery in the coming months also hinge on factors including the potential for more disruptions linked to the war in Ukraine. Global supply chains also are starting to feel the effects of China’s zero-tolerance approach to curbing the coronavirus.

“Container ships are jamming up in Chinese harbors,” says Peter Fuss, a partner at EY’s automotive team. “It will take months to normalize that bottleneck.”


Source : BNN Bloomberg

Charts: European Union New Auto Registration Plunged in November 2021

Source : The European Automobile Manufacturers’ Association and Bloomberg

Charts: China Car Sales in October 2021

China Set to Sell 1.7 million NEVs Between Jan-Aug, Nearly Tripling Year-on-Year

China, the world’s biggest vehicle market, is expected to sell 1.7 million new energy vehicles (NEV) in the first eight months of this year, up from 600,000 units in the same period last year, vice industry minister said on Saturday.

The comments were made by Xin Guobin, vice minister at China’s Ministry of Industry and Information Technology, at an industry conference in Tianjin hosted by China Automotive Technology and Research Center (CATARC). NEV include battery electric, plug-in hybrid and hydrogen fuel-cell vehicles.

NEV makers such as Nio Inc and Tesla Inc are expanding manufacturing capacity in China, encouraged by the government’s promotion of greener vehicles to cut pollution.

Xin said overall auto sales are expected to hit over 16 million vehicles between January and August, up around 10% from 2020. But he warned that the coronavirus-induced global auto chip supply shortage still remains a pressure point on China’s auto production.

He said authorities will continue to curb blind construction of NEV projects and will improve supply of key metals including cobalt, lithium and nickel. Automakers should protect vehicle data security and customer privacy, Xin added.


Source : Reuters


China’s total NEV subsidies jumped tenfold even as government slashed per unit handouts

Over the last few years, government subsidies for new-energy vehicles (NEVs) have declined by as much as four-fifths per vehicle as Beijing looks to wean the industry from the handouts that helped it get off the ground.

However, the dramatic takeoff of sales means that the government still paid out more than 10 times as much in 2020 compared with 2016.

The country’s Ministry of Industry and Information Technology disclosed Monday the subsidies received by carmakers over the five-year period. According to the data (link in Chinese), China gave out 32.9 billion yuan ($5.09 billion) to subsidize electric car production.


Source : Caixin

China Vehicle Sales in June, 2021

Tyler Durden wrote . . . . . . . . .

Sales of Chinese passenger vehicles totaled 1.6 million units for June, which was down 5.3% from June 2020, according to figures released Thursday. Passenger vehicles include sedan, MPV, SUV and minivans, according to the China Passenger Car Association (CPCA).

Despite the dip in the numbers, retail new energy passenger vehicle sales rocketed higher in June, totaling 223,000 units. This marks an increase of 169.9% from June 2020, which was in the midst of China’s full blown response to the coronavirus.

Wholesale volume of new energy passenger vehicles rose by 165.7% year over year to 227,000 units, according to Xinhua. Automakers exceeding 10,000 units of NEV vehicles last month included BYD, Shanghai General Motors Wuling, Tesla China and GAC Aion.

Tesla sold 33,155 China-made vehicles during the month of June, according to the CPCA, Reuters noted on Thursday. In the month of June, the company sold 28,138 China-made vehicles and exported 5,017 vehicles. This total is down from the 33,463 vehicles that the company sold in May.

For comparison, BYD sold 40,532 NEVs for the month. General Motors’ JV with SAIC sold 30,479 vehicles.

Tesla also introduced a lower priced version of its Model Y to the Chinese market this week, starting at ¥291,840 before incentives, which reduced the model’s base price to ¥276,000, or roughly $42,600, according to The Street.

Source : ZeroHedge


Source : China Association of Automobile Manufacturers

U.S. New Vehicle Sales Rebounded in March, 2021

Source : Bloomberg

U.K. New Car Registrations in 2020 Sink to 30-year Low

Theo Leggett wrote . . . . . . . . .

New car registrations fell to their lowest level in nearly three decades last year, according to preliminary figures from the industry’s trade body.

It was also the biggest one-year fall since World War Two, when factories were being turned over to military production, the Society for Motor Manufacturers and Traders said.

About 1.63 million new cars were registered in 2020, compared with 2.3 million in 2019 – a decline of 29%.

It was the lowest total since 1992.

The bulk of the lost sales occurred during the first lockdown in the Spring, when showrooms were forced to close, and factories shut down.

“We lost half a million units from March, April, May – and we never recovered them,” said the SMMT’s chief executive, Mike Hawes.

The restrictions introduced later in the year were less damaging, largely because dealers were able to sell cars remotely, using ‘click and collect’ services.

That remains the case during the new lockdown, announced on Monday.

“We can still do click and collect, which is important, because that’s the very minimum we need,” said Mr Hawes. “Not just to keep retail going, but also to keep manufacturing going.”

Overall, the SMMT said the Covid crisis has cost the car industry some £20bn – and cost the exchequer nearly £2bn in lost VAT.

Trade deal worries

There are also serious questions about the extent to which the car market can recover this year. Previous forecasts, which had suggested new registrations could rise to about 2 million in 2021, have been thrown into doubt by the latest restrictions.

But while the market as a whole has suffered over the past year, sales of electric cars have risen dramatically, increasing their share of the market from 1.5% to 6.5%. Sales of plug-in hybrids also rose sharply.

“If we see this continued level of uptake in electric vehicles, then we anticipate that sales of new EVs and plug-in hybrids will overtake diesel cars in 2021,” said Ian Plummer, commercial director of motoring website Auto Trader. “Then, pure EVs will overtake those of their internal combustion engine counterparts in 2026.”

With the pandemic continuing to inflict serious damage on the industry, Mr Hawes says the trade deal between the UK and the EU came as a “massive relief”.

It confirmed that cars and car parts could continue to move between the two regions, without tariffs – or taxes – being imposed, provided certain conditions are met.

The SMMT had previously warned that failing to reach a deal could have cost the industry £55bn over five years – and add £2,000 to the cost of each vehicle

But manufacturers still face potentially significant additional costs due to so-called non-tariff barriers – including border formalities, and the need to obtain extra regulatory approvals for new designs.

“This is not a free deal”, said Mr Hawes.

Electric dreams

Another consequence of the trade deal is that the UK will need to focus on battery production, if it is to maintain its car industry while phasing out petrol and diesel engines.

That’s because in order to qualify for tariff-free access to the European market, the value of car components made outside the UK and the EU will have to be strictly limited.

Specific rules relating to batteries effectively mean that from 2027, they themselves will have to be made in the EU or the UK.

The SMMT believes that, based on current investment plans, UK battery factories will have a capacity of 15 gigawatt-hours (GWh) by 2024.

That is more than seven times the current level, and would be enough to produce 250,000 electric cars per year.

But the SMMT insists much more is needed: 60GWh in order to produce 1 million cars per year by 2030, and 120GWh to produce 2mby 2040.

That, says Mr Hawes, will require “massive investment”.


Source : BBC

Total Car Sales in China Grew 6.4 percent YoY to 2.83 Million in December 2020

Biggest Drop in UK New Car Sales Since World War Two

Costas Pitas wrote . . . . . . . . .

British new car sales fell nearly 30% last year in their biggest annual drop since 1943 as lockdowns to curb the spread of the coronavirus hit the sector, an industry body said on Wednesday.

Demand stood at 1.63 million cars in 2020, according to data from the Society of Motor Manufacturers and Traders (SMMT). It was particularly hard hit by a 97% fall in April, the first full month of a national lockdown.

Dealerships gradually reopened in June on differing dates across the United Kingdom’s four nations.

“We lost nearly three quarters of a million units over three or four months, which we never got back,” said SMMT Chief Executive Mike Hawes.

Showrooms in England were closed again during a second lockdown in November but many were better prepared with “click and collect” options, allowing more purchases, but still leading to a 27% year-on-year slump.

The performance leaves new car sales at their lowest level since 1992, and suffering the biggest drop since 1943, when sales fell by more than 90%.

Then, Britain was fighting World War Two and industry was repurposed for the effort.

In 2020, diesel car registrations more than halved, while nearly 30% of sales were electric, hybrid and mild hybrid vehicles as Britain brought forward a ban on the sale of new combustion engine-only cars to 2030.

The sector was also awaiting a trade deal with the European Union. An agreement was reached on Dec. 24, meaning immediate tariffs and disruption were avoided, but the sector has warned of additional costs.

The car sector, like others, now faces the challenge of new lockdowns announced in England and Scotland this week.

The SMMT expects sales to be below 2 million this year, with the sector nervously looking ahead to March, one of the top two selling months of the year due to the change in the licence plate series.

“Where the industry is focussed at the moment, is what do we need to do to try to sustain sales …, sustain manufacturing over the next two to three months, especially with March being such a critical month for the industry and that will undoubtedly be affected,” said Hawes.


Source : Reuters