Difficulties continue for Europe’s automotive industry as market declines in July

August 20, 2012: According to the latest analysis from leading automotive intelligence provider JATO Dynamics, the difficulties continue for Europe’s automotive industry as the new car market continued to decline during July 2012.

Key findings:

• The European new car market declined by 8.2% in July and 4.9% Year-to-Date compared to last year.

• Of the Big Five markets, only Great Britain recorded increased sales while Italy and Spain recorded the greatest drop in July unit sales.

• Among the top 10 brands, only Audi recorded a sales increase in July.

• Peugeot’s 208 entered the top 10 models list in fifth place.

Of the top 10 brands, only Audi recorded increased sales in July compared to the same month in 2011, with the Q3, A1 and face-lifted A4 models in high demand.

Just outside the top 10, Toyota, Hyundai, Kia and Dacia all recorded improved sales in July. Land Rover also continued to grow sales, by 82.3 percent in July and by 54.6 percent for the Year-to-Date, due to strong demand for the Range Rover Evoque.

The Volkswagen Golf continued to be Europe’s best-selling car, despite sales falling 16.7 percent compared to July 2011. The Volkswagen Polo and Ford Fiesta take second and third places respectively.

Peugeot’s new 208 model (pictured above) has entered the top 10, in fifth position for the month. Combined sales of the brand’s 2-series models (206+, 207 and 208) are 8.8 percent ahead of July 2011.

Nine of the top 10 models recorded lower sales than a year ago, highlighting the difficulties facing the automotive industry at present. The only model to have recorded increased Year-to-Date sales was the Nissan Qashqai (pictured above), which was up 2.3 percent, helped by the addition of the efficient new 1.6 dCi engine to the range.

Commenting on the findings, Gareth Hession, vice-president (research) at JATO, said: “The Peugeot 208’s sales demonstrate once again how a new product can drive demand. However, the performance of the Qashqai also demonstrates that a product with the right blend of form and function, and with the right marketing and technical improvements, can maintain strong sales well into its lifecycle.”