Sales of New Cars in Europe fell 24.1% in June 2020

Jiří Staník
July 16, 2020

Sales of new cars decreased by 359 thousand in June compared to last year

In the first six months of the year, the decline reached 39.4% yoy

The smallest decline was seen in France (1.23%) while sales in Portugal dropped the most (-56.2%)

Sales of new passenger cars reached 1,132 thousand in June 2020 in the enlarged Europe (EU plus Iceland, Norway and Switzerland), according to ACEA. This is 24.1%, or 359 thousand less than in the previous year. In the first six months of 2020, some 5,103 thousand cars were sold in Europe, down 39.4% yoy.

In June 2020, registrations of new passenger cars in the EU totalled 949,722 units, a drop of 22.3% compared to the same month last year, when 1,222,942 cars were sold. However, this does mark a slight improvement over May 2020, which saw a drop of 52.3% across the EU. Although dealerships opened for business again after lockdown measures were lifted, consumer demand did not fully recover last month.

Historically, between 1990 and 2020, sales of passenger cars in Europe reached a high of 1,937 thousand in March 2017 and a low of 292 thousand in April 2020.

Sales by Country

In June, most vehicles (234 thousand) were sold in France (up 1.23% yoy), followed by Germany (220 thousand, down 32.3%), the United Kingdom with 145 thousand cars (down 34.9%), 132 thousand new vehicles were registered in Italy (down 22.8%) and 82.7 thousand in Spain (down 36.7%). The five largest countries accounted for 64.7% of total new vehicles registered in June 2020.

In absolute terms, the smallest decrease in sales of new cars has was seen in France (2.85 thousand cars) and Slovenia (-0.229 thousand cars). At the other end of the scale, Germany and the United Kingdom showed the biggest drop in registration of new cars in June when compared to last year (down 105 thousand and 78.0 thousand cars, respectively).

In relative terms, sales in France (+1.23%) and Belgium (-1.80%) declined the least compared to a year ago, whereas registration in Portugal and Croatia dropped the most (-56.2% and -49.4% yoy), in June 2020, according to ACEA:

In the first six months of the year, some 5,103 thousand cars were sold in Europe, down 39.4% yoy. The table below shows details of the sales for each of the European countries:

Sales of new passenger cars in Europe (thousands of vehicles)

Country June 2020 June 2019 YOY Change % 1-6/2020 1-6/2019 YOY Change %
Austria 26.7 32.5 -18.0 113 176 -35.9
Belgium 49.1 50.0 -1.80 217 310 -30.2
Bulgaria 2.28 3.26 -29.9 10.2 18.3 -44.5
Croatia 4.17 8.23 -49.4 17.4 38.2 -54.4
Cyprus 0.947 1.18 -19.9 4.91 6.58 -25.3
Czech Republic 20.8 21.9 -5.16 95.0 128 -26.0
Denmark 17.9 20.7 -13.4 88.4 122 -27.7
Estonia 1.60 2.42 -33.9 9.13 13.9 -34.5
Finland 8.02 10.5 -23.9 47.4 60.3 -21.4
France 234 231 1.23 716 1,166 -38.6
Germany 220 325 -32.3 1,211 1,849 -34.5
Greece 8.25 13.1 -37.2 36.6 65.6 -44.2
Hungary 10.4 13.6 -23.7 55.7 74.5 -25.3
Iceland 0.824 1.36 -39.4 4.19 7.29 -42.5
Ireland 1.01 1.41 -28.2 54.3 80.8 -32.7
Italy 132 172 -22.8 583 1,080 -46.0
Latvia 1.27 1.61 -21.1 6.57 9.49 -30.7
Lithuania 2.67 4.55 -41.2 16.8 23.5 -28.4
Luxembourg 4.65 5.20 -10.6 20.8 31.1 -33.2
Netherlands 24.9 41.7 -40.2 159 228 -30.4
Norway 11.4 15.4 -25.5 59.2 78.2 -24.3
Poland 35.8 45.1 -20.5 180 278 -35.4
Portugal 11.1 25.3 -56.2 64.8 129 -49.6
Romania 10.2 14.1 -27.8 49.6 71.6 -30.7
Slovakia 7.50 9.40 -20.2 34.0 45.0 -24.4
Slovenia 6.57 6.79 -3.37 27.8 39.8 -30.2
Spain 82.7 131 -36.7 340 692 -50.9
Sweden 24.7 31.8 -22.3 126 168 -25.1
Switzerland 24.5 28.4 -13.8 103 157 -34.3
United Kingdom 145 223 -34.9 654 1,269 -48.5
EU + EFTA 1,132 1,491 -24.1 5,103 8,426 -39.4
Source: ACEA, Helgi Library

Sales by Manufacturers

Volkswagen Group sold the most cars in June 2020 in Europe, some 272 thousand vehicles representing 24.1% of the European market. Sales of PSA Group amounted to 168 thousand vehicles (or 14.8% of the market) while Renault Group and BMW Group held 13.8% and 6.60% of the European market in June. Overall, the five largest manufacturers sold 65.5% of all new cars in June:

Volkswagen

Volkswagen Group sold 272 thousand new passenger cars representing a 24.1% share of all new passenger cars sold in Europe in June 2020. This is 24.1% fewer vehicles and a 0.016 pp increase in market share when compared to last year. Looking back three years, VW's market share was 22.8%.

The Group sold 119 thousand of Volkswagen brand cars in June, followed by 59.6 thousand of Skodas and 52.3 thousand of Audis. Seat sold 33.5 thousand vehicles and Porsche some 7.28 thousand cars in June 2020:

PSA Group

PSA Group sold 168 thousand new passenger cars representing a 14.8% share of all new passenger cars sold in Europe in June 2020. This is 29.7% fewer vehicles and a 1.17 pp decrease in market share when compared to last year. By comparison, the market share three years ago stood at 16.3% and is down by 1.51 pp now.

The Group sold 74.4 thousand of Peugeots cars, followed by 46.8 thousand of Citroens and 42.6 thousand of Opels in June 2020:

BMW Group

BMW Group sold 74.2 thousand new passenger cars representing a 6.56% share of all new passenger cars sold in Europe in June 2020. This is 26.2% fewer vehicles but a 0.184 pp decrease in market share when compared to last year. Compared to three years ago, BMW Group's market share is now 0.175 pp lower.

The group sold 57.8 thousand of BMW brand cars, followed by 16.4 thousand of Minis in June 2020:

Hyundai Group

Hyundai Group sold 70.0 thousand new passenger cars representing a 6.18% share of all new passenger cars sold in Europe in June 2020. This is 25.1% fewer vehicles and a 0.084 pp decrease in market share when compared to last year. Compared to three years ago, Hyundai Group's market share is now 0.191 pp higher.

The group sold 35.4 thousand of Hyundai brand cars, followed by 34.6 thousand of Kias in June 2020:

Renault Group

Renault Group sold 156 thousand new passenger cars representing a 13.8% share of all new passenger cars sold in Europe in June 2020. This is 15.6% fewer vehicles and a 1.39 pp increase in market share when compared to last year. By comparison, three years ago, Renault Group's market share was 11.9%.

The group sold 108 thousand of Renault brand cars in June, followed by 47.7 thousand of Dacias and 0.308 of Ladas:

FCA Group

FCA Group sold 64.9 thousand new passenger cars representing a 5.74% share of all new passenger cars sold in Europe in June 2020. This is 28.4% fewer vehicles and a 0.346 pp decrease in market share when compared to last year. By comparison, three years ago FCA Group's market share stood at 6.97%.

The group sold 47.1 thousand of Fiat brand cars in June, followed by 10.8 thousand of Jeeps and 3.25 thousand of Alfa-Romeos:

Toyota Group

Toyota Group sold 64.5 thousand new passenger cars representing a 5.70% share of all new passenger cars sold in Europe in June 2020. This is 13.2% fewer vehicles and a 0.718 pp increase in market share when compared to last year. Toyota Group's market share three years ago, by comparison, stood at 4.31%.

The group sold 59.9 thousand of Toyota brand cars in June, with Lexus following at 4.57 thousand cars:

Jaguar Land Rover Group

Jaguar Land Rover Group sold 11.4 thousand new passenger cars representing a 1.00% share of all new passenger cars sold in Europe in June 2020. This is 38.8% fewer vehicles and a 0.241 pp decrease in market share when compared to last year. Three years ago however, the market share of Jaguar Land Rover Group was 1.33%.

The group sold 2.92 thousand of Jaguars in June, followed by of s:

Daimler Group

Daimler Group sold 67.3 thousand new passenger cars representing a 5.94% share of all new passenger cars sold in Europe in June 2020. This is 19.0% fewer vehicles and a 0.375 pp increase in market share when compared to last year. By comparison, three years ago, Daimler Group's market share was 6.26%.

The group sold 65.8 thousand of Mercedes in June, followed by 1.50 thousand of Smart cars:

Overview of the Automotive Market

Based on a comparison of 138 countries, China ranked the highest with 21,444 thousand passenger cars sold in 2019 followed by the USA and Japan. Total sales of passenger cars reached 64,342 thousand in 2019 in the world, according to ACEA. This is 6.33% less than in the previous year and 29.6% more than 10 years ago. Historically, total sales of passenger cars reached an all time high of 70,695 thousand in 2017 and an all time low of 11,000 thousand in 1961. The average annual growth stands at 2.75% since 1960.

The top ranked country, China, accounted for 33.3% of all passenger cars sold in the world. The top 3 countries held a 47.3% share while the ten largest countries some 73.5% in 2019.

China was the largest car producer in 2019 with 21,360 thousand followed by Japan and Germany. Total production of passenger cars reached 67,149 thousand in 2019 in the world, according to ACEA. China accounted for 31.8% of the world's production, while the top 3 countries held a 51.2% share and the ten largest countries some 77.4% in 2019:

Based on a comparison of 27 countries, China ranked the highest in sales of electric cars with 528 thousand followed by Norway and Germany in 2017. When looking at the ratio of electric to total new cars sold, Norway ranked the highest with 39.3% followed by Switzerland and Netherlands:

By contrast, Netherlands ranked the highest in the number of petrol-fuelled as a proportion of new cars sold with 79.6%, followed by Estonia and Malta. In terms of diesel-fuelled vehicles, Croatia ranked the highest with 77.2% followed by Lithuania and Ireland:

In 2016, Switzerland ranked the highest in 4x4 drive cars as a share of new cars sold with 42.1% followed by Norway and Sweden. Switzerland ranked the highest in the average power of new cars sold with 122 kW followed by Luxembourg and Sweden:

Based on the latest available data, Lithuania, Estonia and Romania were the countries with the oldest average age of passenger cars. The average age was an ancient 16.9 years in Lithuania, 16.7 years years for Estonia and 16.3 years years in Romania. On the other end of the scale was Austria with 8.20 years years, the United Kingdom with 8.20 years years and Luxembourg with 6.40 years years.

Overview of Car Manufacturers

Based on a comparison of 27 firms among Global Car Producers, Toyota Motor Corporation generated the highest sales in 2017 followed by Volkswagen Group and Daimler Group. At the same time, Toyota Motor Corporation had the highest market value followed by Tata Motors and Volkswagen Group:

Volkswagen Group generated the highest earnings before interest costs, taxes and depreciation (so called EBITDA) in 2017 followed by Toyota Motor Corporation and Daimler Group. At the same time, Toyota Motor Corporation generated the highest EBITDA Margin followed by Tata Motors and Volkswagen Group.

Ferrari produced the highest net profit per car sold in 2017 followed by Porsche AG and Tata Motors. Ferrari made a net profit of EUR 1,683,561 for each car sold, up 25.1% compared to the previous year.

Jiří Staník
Jiří Staník
CEO & Founder
He spent nearly two decades analysing companies in the region of Central and Eastern Europe, primarily in the area of financial services. Jiri built and headed Equity Research at Wood & Company, a Central European brokerage firm, and got several awards (such as The Best Equity Research or The Best Analyst by Euromoney).