New Car Sales on A Downward Trend As Second Covid-19 Wave Hits Europe
As the coronavirus pandemic enters a second perhaps more deadly wave, new car sales within the European Union are unsurprisingly experiencing a decrease in demand. Key markets in Germany France, Spain and Italy are experiencing falling sales. New car sales in France fell by 10 percent, while new car registrations in Germany fell by 3.6 percent compared to this time last year. Much of Europe has gone back into full lockdown to stem the tide of surging coronavirus infections.
Dealerships in Germany remain open for business as usual. Nevertheless, the German government is urging people to stay at home as much as possible. The UK and French governments ordered car dealerships to close their doors, deeming them to be non-essential retail. Many lockdowns across Europe will last for 4-weeks, however, the UK could extend lockdown measures into Januaryn2021.
During the summer, Germany and France offered incentives such as state-funded loans to boost new electric car purchases. However, these loans proved to be a temporary measure, consumer demand soon declined. Industry analysts are expecting new car sales across the European Union to decline by 20 percent over one quarter as the new 4-week lockdown takes hold.