The European carmakers’ association ACEA has today issued full figures for the December and full-year 2005 new car market across Europe. The numbers confirm market data published last week, which included some estimates, issued by auto industry analysts JD Power-LMC and CSM Worldwide.
Go deeper with GlobalData
The ACEA figures show that are after a weak December in western Europe (EU15 + EFTA) that was down 3.6% on the previous year, full-year ’05 western European new car sales totalled 14.5 million units, a decline of 0.2% on 2004.
Among the five largest national markets of Europe, 2005 new car registrations were as follows:
- Germany: 3.32 million units (+1.6%);
- UK: 2.44 million units (-5.0%);
- Italy: 2.23 million units (-1.3%);
- France: 2.07 million units (+2.7%);
- Spain 1.53 million units (+0.8%)
While the overall western European car market total is respectable in historical terms, incentive activity by vehicle manufacturers across the region was high once again last year, providing substantial support to overall market volume.
Economic worries cloud outlook
There is also concern in the industry that a weak, though admittedly improving, economic outlook for the EU economy in 2006 will result in underlying car demand in the region remaining sluggish. Most analysts are forecasting that 2006 will see a flat car market in western Europe and that at best growth will be low.
Unemployment remains a persistent drag on consumer sentiment in Germany and France.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIn the UK, which has been a source of growth in recent years, continued market decline from a high base reflects continued consumer cautiousness in the face of higher interest rates and a less tight housing market.
Higher interest rates in Spain are also set to curb demand there in 2006.
However, the German car market could receive a fillip towards the end of 2006 as consumers bring purchases forward ahead of a planned 2007 VAT increase.
Used cars continue to depress Poland’s new car market
ACEA also published new car sales figures for those central European countries that have joined the EU. The largest of those markets is Poland: 2005 new car sales there totalled 235,500 units – a decline of some 26% on 2004. Poland’s new car market continues, post-EU entry, to be adversely affected by an influx of used cars from western Europe, mainly from Germany.
The Hungarian market in 2005 saw a decline of 2.7% to 201,400 units while the Czech market managed a gain of 1.3% to 127,400 units.
Sales in the central European new EU states were off 10% in 2005 at 727,100 units, leaving ‘total Europe’ (all EU plus EFTA) at 15.22 million units, a decline of 0.7% on 2004.
Volkswagen stays in pole
ACEA also published some brand level detail for western Europe (EU15+EFTA) which showed Volkswagen Group in front as car market leader once again with a market share increase (2005 share of 18.9% versus 18.1% in 2004); only troubled SEAT among the VW Group brand stable failed to register a 2005 share gain. However, Volkswagen has had to cut prices and offer incentives on its Golf model in order to shift it in the face of strong competition in the segment from several models including the Opel/Vauxhall Astra.
There were small 2005 market share declines for PSA, Ford and Renault but a whopping 10% volume decline for Fiat Group shaved a 0.8 percentage point off its share to 6.5%. That new Punto can’t come soon enough.
GM held steady
GM share held steady at 10.6% with Opel/Vauxhall flat on 2004 at 9%; Chevrolet (ex-Daewoo) continues to grow sharply – December sales were up 27.7%. But it wasn’t all good for GM. ‘GM (US)’ – presumably mainly Cadillac, some US-made Chevrolets and a few Corvettes – was up to just 5,400 units, from 4,700 units in 2004, suggesting a very low rate of penetration growth for Caddy (‘GM (US)’ in December was actually down on the previous year at just 236 units).
Kia is fastest growing brand
Asian brands generally did well in Europe in 2005, according to ACEA’s data. Toyota and Lexus combined grew share to 5.3% from 5.0% in 2004. Hyundai was up from 2.0% to 2.1% while Hyundai Motor’s Kia division was at 1.6% versus 1.1% in 2004 (with a mighty volume gain of 39% in the year). That makes Kia the fastest growing brand in Europe.
Smart slump in prospect?
A large volume decline for DaimlerChrysler’s Smart brand in December (off 28.3% on year-ago pace) raises questions on how it will perform in 2006 without new product and the loss of the roadster, in spite of the fact that it held its share flat overall in 2005 at 0.9%. Mercedes-Benz held its share steady in 2005 at 4.7%; overall DaimlerChrysler share was 6.2% against 6.3% in 2004.
1 Series boost for BMW
BMW sales were up strongly (+9.6%) in 2005 reflecting the full-year impact in ’05 new registrations of the 1 Series range (BMW Group share accordingly jumped to 5.3% against 4.8% in 2004 – within that, Mini was flat at 0.9%).
Dave Leggett
Note: EU15 = Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Spain, Sweden, UK; EU New Members included in ACEA analysis = Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, Slovenia; EFTA countries included in ACEA analysis = Iceland, Norway, Switzerland
