European car sales hit new low in May

In the worst May figures of the last 20 years, the drop in European car sales has reached a new low. This has knocked for six the slight hopes manufacturers has of reversing the continuing drop in sales they have suffered for the last 5 years.

According to the European Automobile Manufacturers’ Association, there has been a drop of 5.9% in the sales that were recorded last year during the same month. The registration of slightly over a million cars is the lowest since 1993, which is a blow to the industry after they saw an increase in April.

France, Italy and Germany showed huge sales decline rates and only the UK had an increase in their sales in May where they rose by 11%. As more consumers become unwilling to buy new cars manufacturers are struggling to stay afloat. Factory closures and deferring the launch of new cars is a trend that can be seen across the board with car manufacturers.

An automotive analyst at IHS, Mark Fulthorpe, says that there is a fear amongst consumers in the southern European markets and the state of the eurozone economy is sparking concerns in countries such as Germany. Consumers are therefore declining to make big purchases which they had been making in the year 2012.

In the southern eurozone countries, there is a slowing down of the markets as austerity becomes the popular trend. According to IHS, there will be a 4% drop in the sales of new cars from the year 2102, which recorded 12,053,904 vehicles sold, a figure that is the lowest since the year 1995.

However, since last year’s slump in sales of new cars, the German market has seen a steady rate of sales. However, this has shrunk by 8.8% of the figures recoded in the first 5 months of the year 2013. The figures showed a decline of 11.9% and 11.3% in the sales in France and Italy, respectively, over the same period.