European Automobile Manufacturers Association: European new car sales in November 2024 will be 1.06 million, a year-on-year decrease of 2%.

European car sales fell last month as slowing demand sparked an industry crisis. New car registrations fell 2% in November from a year earlier to 1.06 million, with the worst declines in France and Italy, the European Automobile Manufacturers Association (ACEA) said on Thursday. Spain was the only major market in the region to see sales rise.

Automakers are grappling with slowing sales in Europe, where consumers are still pressured by rising living costs. Some countries have scrapped subsidies for electric vehicles, further dampening demand for low-emissions cars, which tend to be more expensive than gas-powered cars.

European car sales stagnate

Europe’s largest automakers, including Volkswagen AG and Stellantis NV, are accelerating cost-cutting while trying to appease unions. The crisis has also hit auto suppliers and startups such as Swedish battery company Northvolt AB, which filed for bankruptcy protection in November.

The European Automobile Manufacturers Association said European pure electric car sales rose slightly by 0.9% in November from a year earlier, helped by strong sales in the UK, where discounts stimulated demand. European pure electric car sales were still slightly down from January to November. Plug-in hybrid registrations fell 8.6% last month.

Registrations of non-plug-in hybrids, powered by an internal combustion engine and a small battery, are rising as European consumers struggle to adapt to electric vehicles. Sales of these cars, which are powered by an internal combustion engine and a small battery, rose 16% in November.

Sales data of major European automakers in November

The effects of the auto industry slowdown are far-reaching. Volkswagen plans to cut jobs and close factories in an unprecedented move, while Stellantis is trying to recover from a disastrous year. Carmakers each face billions of euros in fines if they fail to meet tougher European auto emissions rules set to take effect next year.

Suppliers have also announced deep cost-saving measures to cope with the slump in demand, with parts makers such as Bosch, ZF Friedrichshafen and Schaeffler AG cutting thousands of jobs as the crisis hits the industry's supply chain.

Other industries are tapping into the opportunities. German defense companies are recruiting auto workers, and radar maker Hensoldt AG is in talks with two different auto parts suppliers to hire entire teams.

From Zhitong Finance APP