European sales fall 8%; No sign of rebound

Volkswagen Group's Audi and Porsche brands, Renault and Fiat Chrysler Automobiles led an 8.1 percent decline in European sales in November, as the introduction of tougher WLTP emissions tests continued to weigh on demand.

Registrations fell to 1.16 million cars in European Union and European Free Trade Association (EFTA) countries last month, industry association ACEA said on Friday.

The drop was the third monthly decline in a row after the introduction of the new Worldwide harmonized Light vehicles Test Procedure (WLTP) in the European Union forced some automakers to halt deliveries of some models that had yet to be re-certified.

Volkswagen Group sales fell by 11 percent, with Porsche sales plummeting 62 percent and Audi sales down 41 percent. The core VW brand's volume dropped by 3.8 percent. The Skoda and Seat marques each gained about half a percent.

PSA Group's registrations fell 6.1 percent with Peugeot down 6.4 percent, Opel/Vauxhall sales dropping 8.1 percent and Citroen falling 1.6 percent.

Renault Group's volume declined by 16 percent with the Renault brand down 28 percent while Dacia gained 14 percent.

Fiat Chrysler registrations fell 8 percent, with Alfa Romeo down 47 percent and Fiat falling 11 percent. Jeep sales rose by 29 percent.

Ford's volume declined by 8.4 percent.

• Download PDF here for November and 11-months sales by automaker and brand.

Asian brands except Toyota all had a bad month with Nissan hit worst after recording a 28 percent decline. Hyundai sales fell 5.3 percent, Kia sales were down 1 percent and Honda's registrations dropped by 14 percent. Toyota brand sales gained 3.5 percent.

Among premium brands, Jaguar sales jumped 46 percent, Volvo's registrations increased by 12 percent and Mercedes-Benz gained 4.2 percent. Land Rover sales were down 9.4 percent. BMW's registrations dropped by 2.6 percent.

Car sales had surged in August ahead of the Sept. 1 introduction of the WLTP testing regime in Europe as automakers cleared stocks with heavy discounts. But registrations have declined every month since.

Year-to date sales are up 0.6 percent to 14.6 million. A bad December could throw 2018 into negative territory overall. Automakers would need to sell 1.05 million cars this month keep pace with 2017. That will not happen if December registrations drop more than 8 percent from a year earlier.

EY Consultancy said in November it saw a pick-up to normal levels soon. EY partner Peter Fuss said he now expects December to be negative as well, due to fewer shopping days.

The UK and Italy, two countries mired political and economic uncertainty, have dragged down sales all year. While both fell in November, Germany, the biggest European market, led the downturn with a 9.9 percent drop in registrations.

Automakers are looking at a tough 2019 as well. BMW is facing at least 1 billion euros in headwinds, the company said last week. Worries range from the Chinese market, which is declining, to a no-deal or chaotic Brexit scenario in March.

Reuters and Bloomberg contributed to this report