Europe's car market: It goes up again

Europe's car market edged slowly Occurs. After many EU countries have eased in may, with restrictions to protect against the Coronavirus, were able to sell the

Europe's car market: It goes up again

Europe's car market edged slowly Occurs. After many EU countries have eased in may, with restrictions to protect against the Coronavirus, were able to sell the car manufacturer 300,000 cars, more than the historic low point in April. But that is only half as much as the same month of the previous year: 581.000 vehicles were registered in may in the European Union, such as the manufacturers Association ACEA announced on Wednesday in Brussels.

For June, experts expect a further recovery. At least in Germany, but are likely to wait for many consumers, as the temporary VAT reduction is effective from July. The effect of the economic stimulus package of the Federal government on the car industry had already manageable, says Peter foot of the consulting firm EY. "There will be a large volume of entrainment effects, but hardly any new impulses to Purchase," he said.

For the car wasteland, it would have been better if, as in France, the purchase of cars would have been promoted with an internal combustion engine, said the expert. "The French purchase premium will have the desired effect, so in the short term, many people buying a new car animate," says foot. Even if it was part of the early purchases, and that this will help the industry through the difficult summer months.

the Boom of E-cars

But also the higher government subsidy for electric cars will cause that the number of new registrations continued to rise, the car expert: "The discount on the purchase of an electric car is a 9000 Euro in Germany, meanwhile, is actually enormous." As a result, the price of cheap E halve-and Mobile fast, possible discounts from merchants including. The interest of the buyer will increase undoubtedly.

However, the range of available battery vehicles is still limited. Also, increasing sales, way, meant, of necessity, also higher profits. "The auto industry deserves to be with electric cars is currently very little money. In the case of Burners, the margin is considerably larger – but not promoted,“ explains foot. By the reduction of VAT on 16 of 19 percent from July, the cars with internal combustion engines, however, receive a discount. In the case of a new car for the price of 30,000 euros, this amounts to 900 Euro.

In may, the number of new registrations climbed from purely battery-powered vehicles in the five largest countries in Western Europe to one-quarter. Sales of Plug-in hybrids that have an electric drive and a burner on Board, even increased to 59 percent. Massive losses were recorded by gasoline and Diesel vehicles, whose sales have tumbled, according to calculations from EY in Germany, the UK, France, Italy and Spain by almost two thirds.

Updated Date: 17 June 2020, 17:19

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