UK: European car sales off in May; YTD showing improvement

According to JATO Dynamics, European new car sales slipped back into decline during May. Following a small 2.0% increase in April (versus April 2012), May ended with a 5.8% reduction in new car sales/registrations. However, despite year to date (YTD) figures showing a year on year decline of 6.8%, the downward trend appears to be slowing, as YTD decline rates have become smaller each month since last March.

Within the ‘Big Five’ markets, Great Britain was the only market to record an improvement in year on year sales volumes for both the month and YTD figures whereas France, Germany, Italy and Spain all suffered decreased volumes for both month and YTD figures.

B segment models took four out of the top five places for European sales volumes while the VW Golf remains at the top of the leader board.

Mercedes is the only brand in the top 10 to record increased sales volumes for both the month and YTD versus 2012.

Although Finland posted the largest year on year increase for the month of May at 39.6%, this dramatic increase is largely due to a change in car tax in April 2012 that resulted in an artificially high sales volume in March 2012 and thereafter artificially lower sales in the subsequent months. YTD figures, which remain down by 19.5%, are more representative of the overall picture in Finland. 

In contrast to current market trends, Great Britain posted an 11.0% increase in year on year figures for May, remaining up by 9.3% YTD.

Of the top 10 manufacturers, Mercedes was the only brand to record an increase in either year on year monthly or YTD figures, with sales up 1.8% and 2.3% respectively. This is largely thanks to the successful launch of the new shape A-Class and the introduction of the new CLA-Class four-door coupé.

All other brands in the top 10, including market leader Volkswagen, reported a decline for both monthly and year to date volumes. 

Outside the top 10, Dacia, currently 17th, made significant progress over 2012, reporting an 18.2% increase in both monthly year on year and YTD volumes. Other brands that are making strong progress include: Mazda, up 30.9% for the month and 7.2% YTD; Seat, up 12.8% for the month and 9.4% YTD; Land Rover, up 10.8% for the month and 10.1% YTD; and Jaguar up 16.2% for the month and 15.6% YTD.

The Volkswagen Golf continued to be Europe’s best-selling car, despite a slight drop in sales (0.7% for the month and 2.1% YTD). New model Peugeot 208 and facelift Renault Clio continued to sell well, recording increased sales in May 2013, compared to May 2012. 

Of the top five, four were B segment models: Ford Fiesta; Peugeot 208; Opel/Vauxhall Corsa; Renault Clio. However, both the Ford Fiesta and Opel/Vauxhall Corsa experienced a drop in sales for the month compared to May 2012 and also remain down YTD.

Gareth Hession, research head at JATO, said: “Although the latest YTD figures continue to show an overall decline, it’s important to note that they suggest the decline is beginning to slow. Alongside a few of the premium names, brands like Dacia, Kia, Subaru and Seat are helping to reverse the trend of decline.”