Business
A trade group on Tuesday predicted that the market for new cars in the EU would shrink by 25 percent as a consequence of the novel coronavirus pandemic.
The European Automobile Manufacturers’ Association (ACEA), expects EU car sales to tumble by more than three million from 12.8 million units in 2019 to some 9.6 million units in 2020.
ACEA noted that in volume terms, the forecast for 2020 was the lowest since 2013, and in percentage terms, the bleak outlook represents the sharpest drop ever witnessed by Europe’s automobile sector.
In January, the market contracted even more, by 41.5 percent on a year-on-year basis, but a rebound was expected as virus restrictions had been lifted in most of Europe.
ACEA, however, called for subsidies to help revive demand.
According to its Director-General, Eric-Huitema, given the unprecedented collapse in sales to date, purchase incentives and scrappage schemes are urgently required right across the EU to create much-needed demand for new cars. (dpa/NAN)
– Jun. 23, 2020 @ 13:55 GMT |
Tags: EU car industry group expects record 25% drop in 2020 sales
