New car sales in Western Europe grew by just 0.1% year-on-year (YoY) in July according to data released by LMC Automotive. The annualised selling rate (SAAR) climbed to 14.3m units a year in July, from 14.2m units a year in June.
Germany continues to be the powerhouse of Western European car sales, thriving amongst a generally stagnant region.
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In Germany, sales increased 4.7% YoY in July, with the selling rate rising beyond 3.8m units a year. The UK market, however, was down 4.1% YoY in July, and the selling rate fell to 2.28m units a year – even lower than H1’s disappointing results. LMC said that the increased risk of a ‘no-deal’ Brexit, exacerbated by Boris Johnson’s ascension to Prime Minister, continues to dominate the downside risks to the UK forecast.
French car sales fell 1.8% YoY in July; however the selling rate continued to linger around the 2.2m units a year mark. Italian registrations were down 0.1% YoY in July, despite an extra selling day. The selling rate – which at 1.9m units/year is in line with the average for the year to date (YTD) – underlines the lacklustre pace of sales in Italy.
The Spanish market disappointed also in July, contracting by 11.1% YoY in July, whilst the selling rate has fallen further, to 1.2m units a year.
For the YTD, Western European car sales are down 3% YoY, although the selling rate is currently averaging a relatively strong 14.4m units a year. Next month is likely to see significant YoY declines in almost all Western European markets, given an exceptional base effect. August 2018 posted the highest selling rate ever seen in Western Europe (18.4m units/year), due to purchases being brought forward ahead of the WLTP implementation. From September, the YoY comparisons should swing back into positive territory, but given the generally sluggish performance of most major markets in the YTD, full year growth is likely to remain subdued, LMC said.
LMC forecasts that for the year as a whole, the West European car market will turn out at 14.23m units, virtually flat on 2018.
