Volkswagen scandal dents sales in EU car market
Sub-3% growth rate recorded in October was slower than the 9% or more recorded in each of the prior four months
Slowing sales at Europe’s biggest automakers including scandal-hit Volkswagen took the pace off growth in the region’s car market last month, as registrations increased at their slowest rate since May.
Passenger car registrations in the European Union rose 2.9 per cent in October to 1.1m units, meaning sales have risen more than 8 per cent in the year to date.
The sub-3 per cent growth rate was slower than the 9 per cent or more recorded in each of the prior four months.
Slowing growth has partly been blamed on VW, which has been left reeling by a string of damaging revelations over its compliance with global emissions test standards.
Europe’s biggest carmaker, which accounts for about one in four cars sold in the EU, admitted in September to cheating on US tests for nitrogen oxides, and said earlier this month that an internal investigation had also turned up issues with carbon dioxide testing in 800,000 cars in Europe including almost 100,000 petrol models.
VW group’s October sales dropped 0.5 per cent year-on-year, as the namesake passenger car brand declined by 0.2 per cent. The struggling Spanish Seat nameplate, also owned by VW, fell 11 per cent, but premium badge Audi rose 4.1 per cent.
Analysts say the 12-brand VW group has yet to feel the full commercial impact of the emissions scandal, since deliveries occur several weeks after purchases are made.
VW’s performance was not out of step with Europe’s other leading manufacturers in October, with Peugeot, Renault and Opel — owned by General Motors of the US — all posting declines. Ford, however, bucked the trend with a small gain last month.
Among the other mass-market manufacturers, Fiat Chrysler Automobiles continued to be the standout performer, with sales rising 8 per cent on the back of strong demand for its Jeep sport utility vehicles.
Premium marques BMW and Daimler, owner of Mercedes-Benz, also continued to perform well.
Manufacturers have now sold more than 11.5m units in the first 10 months of the year, according to figures released by the industry body Acea on Tuesday morning.
Analysts at Barclays said that despite the fallout from the VW emissions scandal, “the EU autos sector is in good shape, as a combination of factors including low interest rates, consumer confidence and new models continue to attract car buyers”.
Only the UK declined among the big five European car markets, as October brought to an end a record growth run of 43 months.
— Financial Times
