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February 17, 2021 03:01 AM

Europe sales plunge 26% in worst January total on record

Staff and wire reports
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    Sales of the XC40 Recharge helped Volvo to a sales gain in Europe in January.

    New-car registrations in Europe fell to a record low in January, as lockdown measures to restrict a second coronavirus wave hit sales in the region's largest markets.

    Registrations plunged by 26 percent to 842,835 in the EU, UK and the European Free Trade Association (EFTA) markets, industry association ACEA said in a statement on Wednesday.

    Major brands including Opel, VW, Audi and Hyundai had steeper drops than the overall market.

    Volvo, Porsche, Renault's Alpine sports-car unit and Smart were the only marques to show sales gains.

    Volvo sales rose 3.6 percent, boosted a strong performance in its home market of Sweden, and by high demand for its Recharge line of plug-in hybrid cars and the XC40 full-electric SUV.

    Registrations at Volkswagen Group, the region's top-selling automaker, fell 28 percent with VW brand down 32 percent, Audi down 31 percent, Seat down 27 percent, Skoda down 21 percent and Porsche up 1 percent.

    Europe's No. 2 automaker by unit sales, Stellantis Group, formed from the merger of PSA Group and Fiat Chrysler Automobiles, saw its registrations drop 27 percent.

    Its top-selling brand, Peugeot saw sales decline by 18 percent. Opel, its No. 2 brand by sales, was down 34 percent. Among the group's other brands, Fiat fell 29 percent and Citroen was down 33 percent. Registrations of Jeep's SUVs declined by 14 percent and Alfa Romeo's volume plunged 47 percent.

    Renault Group's registrations dropped by 23 percent, with Renault brand down 28 percent and Dacia down 12 percent. Sales of Alpine sports cars rose 19 percent to 77 units.

    Among Asian brands Nissan's volume plunged 40 percent, Hyundai fell 32 percent, Toyota was down 19 percent and Kia sales fell 10 percent.

    Ford's registrations declined by  26 percent.

    Sales of BMW brand's premium cars were down 16 percent while Mercedes-Benz registrations fell 21 percent. Sales of Smart cars were up 191 percent to 2,590 from 889 last January.

    Europe sales Jan 2021
    Europe sales January 2021 >

    All of Europe's five largest markets posted declines in January.

    Registrations in Spain registered the biggest drop of 52 percent. Sales in Germany, Britain and Italy fell by 31 percent, 40 percent and 14 percent respectively. France saw a smaller drop of 5.8 percent in the month. Sweden was the only EU country where sales were positive, rising 23 percent, with low registration figures in January last year due to a vehicle tax increase behind the increase.

    Shuttered showrooms and hesitant consumers are plaguing automakers which also are fighting production outages due to a worldwide shortage of semiconductors. Many manufacturers’ earnings are being rescued by resurgent demand from China, with Volkswagen and BMW among those posting better-than-expected preliminary earnings.

    "The European auto-sales outlook for the first half remains uncertain," Bloomberg Intelligence analyst Michael Dean said in a note Tuesday. Expectations for a near-doubling in operating profit across the region’s automakers this year are increasingly doubtful, he said.

    Bloomberg and Reuters contributed to this report

    EUROPE BY THE NUMBERS NEWSLETTER: Sign up for our monthly newsletter delivering data and commentary on European sales, including sales by model, top models overall, and top models in major markets.
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