New Passenger Car Registrations in

Europe Dip 2.4%

Europes well-developed automotive industry is suffering from overcapacity and fierce
competition pushing down both prices and profits. Consequently, car registrations are
dipping year after year. Between 2006 and 2014, fewer people bought new cars and
the number of new registrations declined more than 2.8 million units. Car sales today
are at levels last seen in early 1990s.

New
Passenger
Car Registrations
in Europe*

2006-2014
Figures in million units
YOY
(2014-15): 3%

CAGR (2006-14): -2.4%

15.8

16.0

14.4
1.1
0.4

14.7

14.4
1.2
0.4

2006

13.2
1.2
0.4

2007

EU15

14.5

2008

EU10

13.3
0.9
0.4

2009

13.8

13.6

12.6
0.8
0.4

2010

12.5

12.3
0.8
0.5

2011

12.3

11.3
0.8
0.5

11.1
0.8
0.5

2012

2013

13.0

13.4

13.0

13.4

2014

2015E

EFTA

Note: Registrations of new passenger cars is a proxy for sales in the European Union
Note - * Europe = EU27 + European Free Trade Association (EFTA);
EU27 = EU15 + EU10
EU15 = Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal,
Spain, Sweden, UK
EU10 = Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia
EFTA = Iceland, Norway, Switzerland
Data for Cyprus and Malta unavailable
E refers to Estimated

Sales of passenger cars in Europe had reached a record 16 million units in

2007, but bottomed out in August 2013 at levels not seen since 1990.

Passenger Car Density per 1,000 Inhabitants - A Quick Look at Some European Nations

2012

Figures in actuals

621 563 512 486

Italy
France Poland

472

Netherland

Finland

448

663

Czech
republic

Luxembourg

301

Hungary

Passenger Car Density per 1,000 Inhabitants in EU

1995-2012
Figures in actuals

380
1995

448

487

2005

2012

Passenger Car
Production and
Assembly Plants
in EU15 and EU10

2014

Figures in actuals

No.of
Plants

EU15 Country
Austria

Bulgaria

Belgium

Czech Republic

Finland

Hungary

France

14

Poland

Germany

25

Romania

Italy

10

Solvakia

Netherlands

Solvenia

Portugal

Total

16

Spain

10

Sweden

United Kingdom

19

Total

92

Market Share of
Passenger Car
Manufacturers in
Europe

The European Automobile Manufacturer's

Association (ACEA) members assemble
passenger cars in around 18 European
countries

2013
8%

General Motors

6%
BMW Group

7%

6%

Ford

9%
11%

No.of
Plants

EU10 Country

Fiat Group

Renault Group

6%

Daimler

6%

Toyota Group

PSA Group

25%

VW Group

ket Share
r
a
M

3%

Hyundai

14%

Others

Key Facts
Europe produced 12.3 million cars in 2013, 17% of the 73.1 million
produced globally.
The sector is also a key driver of knowledge and innovation,
representing Europe's largest private contributor to R&D, with USD43
billion invested annually.
Europe's cars are the cleanest, safest and quietest in the world. Noise
from passenger cars has been reduced by 90% since 1970.

Drivers
The demand for passenger cars from foreign countries, especially
BRIC (Brazil, Russia, India, China, and South Africa) nations, has led to
an increase in exports of passenger cars. In 2013, export of passenger
cars by EU nations rose 2.1% on year-on-year basis with 5.9 million
cars exported to foreign countries.

Challenges
There are barriers to internal trade within the EU restricting it to form a
single market for the development, production, sale and aftermarket
support for vehicles.
European labor market remains very weak, with more than 24 million
people unemployed across the 28-nation union. Due to
unemployment, people do not have enough funds to purchase new
vehicles.
Source: European Automobile Manufacturers Association; OANDA Average Interbank Rate (January 01, 2013 to
December 31, 2013 Average) - Euro () to US Dollars ($) = 1.3279, Statista - Market share of selected car
manufacturers in the passenger car market in Europe in 2013, based on new registrations , The New York Times
- Auto Sales in Europe Rise for 14th Consecutive Month, Nov 18, 2014; Organisation Internationale des
Constructeurs dAutomobiles (OICA).

Arancas Views
High unemployment rate and financial instability in European nations have dented the sales of
passenger cars in the past decade and the market is not expected to regain lost ground before
the end of 2020. Owing to intense pressure of competition in the home market, foreign markets
are looking more attractive from a trade perspective. The huge demand from Asian countries for
passenger cars is changing the trade flow and the automotive value chain. The passenger car
manufacturers in Europe need to restructure and adjust capacity to match demand from foreign
countries better.
Across the globe, a majority of countries are setting stringent greenhouse gas targets as well as air
quality rules for passenger cars. As a result, passenger car manufacturers are required to develop
a portfolio of propulsion technologies, dominated by advanced combustion engine technology. In
addition, they should add more value in alternative powertrain concepts (such as electric and fuel
cell vehicles) and innovative solutions for safer and cleaner passenger cars.
Compiled by: Darsh Lathia
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