Published Date : Dec 17, 2013
The low automobile sales levels that have not been seen since the early 1990s in Europe are showing signs of recovery. The number of new cars registered in November 2013 has shown an increase-with this being the third consecutive month.
Automobile registrations mirror the sales figure and in November 2013, the new car registrations grew by 1.2% as compared to the same time in the previous year. The total new car registrations in November 2013 stood at 938,021, according to figures released by the European Automobile Manufacturers\' Association. In October, the registrations stood at around 1 million.
With the signs of recovery becoming apparent, automakers in Europe can expect some relief soon. The industry was hit by economic uncertainty and the resultant reluctance by customers on new car purchases. The rising unemployment owing to the sovereign debt was also one of the reasons for the auto industry taking a hit.
The European car industry also continues to face problems pertaining to overcapacity as demand has slid down after peaking in 2007. In all, between January and November 2013, the new car registrations were recorded to be 10.95 million
The manufacturing units of automakers such as Ford Motor Co., General Motors Co., Peugeot Citroen and Fiat SpA have been operating below their full capacity, and are expected to rack up losses in the current financial year.
In 2013, Volkswagen managed to retain its dominant standing in the European auto sector with its market sharing going up marginally to 26.2% from its market share of 25.6% in 2012.
The strongest demand in the European region came from the Netherlands and Greece.