Europe car sales return to growth after painful year of declines | Autoblog

Europe’s new-car market returned to growth in August for the first gain in 13 months, though the respite may be short-lived as record inflation and an unprecedented energy crisis threaten to put off buyers.

Registrations rose 3.4% to 748,961 vehicles last month, the European Automobile Manufacturers’ Association said Friday. Germany’s Mercedes-Benz AG was among the best performers with a 16% jump from a year ago. 

Carmakers are seeing glimmers of improvement with some supply-chain constraints such as the lack of semiconductors beginning to ease. Even so, runaway inflation and a slowing global economy are clouding sales forecasts. Last month’s showing compares to poor year-earlier performance and remains well below pre-pandemic levels.

“High inflation, rising interest rates and waning consumer confidence, coupled with customers extending the replacement cycle amid the improved reliability of newer cars and swiftly changing technology may challenge underlying demand in 2023 and beyond,” Bloomberg Intelligence’s Gillian Davis said in a note this week.

Forecasting vehicle purchases remains difficult as consumers worry about surging energy bills and the risk of rolling blackouts as Russia cuts gas deliveries. Authorities in Germany, Europe’s biggest auto market, this week urged industrial consumers to cut their gas consumption. One of the German car industry’s biggest polymer suppliers is cutting production in Europe because of excessive energy costs.

The cost of energy and rising interest rates squeezing car buyers are likely to cap high vehicle prices that gained when semiconductor shortages curtailed car availability. European Central Bank officials have said they expect to raise borrowing costs further at their next several meetings after last week’s jumbo rate hike.

Registrations grew by 3% in Germany, 3.8% in France and 9.1% in Spain.

Related videoL

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Automobile News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TechAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More