| Updated on: 21 Nov 2024, 11:15 AM
European car manufacturers are facing stagnant sales, leading to job cuts and cost-saving measures. New car registrations in Europe grew by just 0.1 per cent in October compared to the same period last year. While EV sales rose 6.9 per cent last month, they remained down for the rest of the year as policymakers reduced support. (AP)
Car sales in Europe are flatlining, leading manufacturers including Ford Motor Co. and Volkswagen AG to push for cost cuts in response to muted demand.
New-car registrations inched up just 0.1 per cent in October compared to a year ago, to 1.04 million units, the European Automobile Manufacturers’ Association said Thursday. Declines in France, Italy and the UK largely cancelled out expansion in Germany, the region’s biggest car market.
Automakers have struggled to grow sales in Europe as the transition to electric vehicles stumbles and a cost-of-living squeeze crimps budgets. Ford on Wednesday announced plans to cut another 4,000 jobs in the region, about 14 per cent of its local workforce. Volkswagen is pushing for savings measures including unprecedented plant closures in Germany.
Also Read : Ford to cut 4,000 jobs, blame it on facing economic headwinds & weak EV sales
The UK, where registrations jumped 24 per cent in October, has been a bright spot as manufacturers offer significant discounts to meet the government’s zero-emissions vehicle sales mandate.
In Germany, where Chancellor Olaf Scholz’s government scrapped aid late last year, EV sales declined 4.9 per cent in October, and are down more than a quarter after the first ten months. Porsche AG and Mercedes-Benz Group AG have dialled back their EV ambitions in recent months, citing slower-than-expected momentum for plug-in models.
While the German government has been weighing reintroducing some aid to support its beleaguered carmakers, it’s unclear whether it can go ahead after Scholz’s ruling coalition collapsed, inhibiting its ability to act decisively before early elections.
Also Read : Indian auto sector posts highest-ever October sales, two-wheelers and SUVs take charge
A Europe-wide EV downturn increases the risk that manufacturers including VW, Stellantis NV and Renault SA will end up having to pay billions of euros in fines if they fail to meet stricter fleet-emission rules set to kick in next year.
Buyers instead are gravitating toward hybrid vehicles powered by a combustion engine and a smaller battery, benefiting manufacturers led by Toyota Motor Corp. Sales of hybrids rose 16 per cent last month.
Volkswagen, which is locked in negotiations with unions over widespread cost cuts in Germany, saw registrations increase 13 per cent in October. Stellantis’s sales declined 17 per cent in the same period.
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First Published Date: 21 Nov 2024, 11:15 AM IST
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Publish date : 2024-11-21 09:15:00
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