2020 (August) Europe: Car Sales and Market Analysis

In August 2020 the European new car market contracted by 18% as sales dropped in all major markets. SUVs took the largest market share in Europe.

n August 2020 the European new car market contracted by 18% as sales dropped in all major markets. SUVs took the largest market share.

New passenger vehicle registrations in the European Union, UK, and EFTA were down by 18% in August 2020 to only 880,200 cars. Year-to-date 2020 the European new car market contracted by a third. In August 2020, one in five newly registered cars in Europe was electrified although the market share of battery-electric vehicles was 5.5%. SUVs took a 41% share of all new cars sold in Europe in August 2020.

European Car Market Statistics 2020: January, February, March, April, May, June, July, August, September, October, November, December

European New Car Market in 2020 (August)

European car sales in August 2011 to 2020

In August 2020, new passenger vehicle registrations in Europe were weaker than anticipated. Overall, volume fell by 18% year-on-year, indicating that the positive trend seen since May – when lockdown began to ease across Europe – has been halted. The 18% drop in August 2020 came in heavy contrast to the 4% decrease posted by the market when comparing July 2020 and July 2019. The large decline in August is closer to the 24% decrease witnessed between June 2020 and June 2019.

In total, the European market registered 881,897 new passenger cars last month, the lowest number recorded for August since 2016. Year-to-date figures show a similarly downbeat picture, with 7,247,341 new cars registered, down by 33% from 2019 and the lowest result over the last decade.

Car Sales Per European Country in August 2020

According to JATO, car sales per European Union, EFTA, and UK countries were as follows in August 2020 and year-to-date 2020:

New car sales per European Union, EFTA, UK country in August 2020

In August 2020, car sales in Europe’s two largest car markets contracted by a fifth. Only the small Lithuanian new car market showed any significant growth.

Felipe Munoz, a global analyst at JATO Dynamics, commented: “We continue to say that it is still too early to talk about recovery and the results last month indicate that there are still big issues that need to be addressed in the industry. Fortunately, the larger drop seen in August was mostly caused by business/fleet registrations, as private registrations only fell by 4%. This is a good indicator that the situation is not as dire as it might seem.”

Following a more stable market in July, car sales in August 2020 were disappointing but it should be born in mind that August 2019 sales were relatively strong in many markets, especially Germany, when manufacturers discounted prices to ensure car registration before new WLTP regulations came into force.

EU Car Sales Per Fuel Type in 2020 (August)

In August 2020, the European new car sales per fuel type were as follows:

In August 2020, the European new car sales per fuel type

EVs were the industry’s saving grace in August. According to JATO data, consumers across Europe bought 188,700 electrified vehicles, an increase of 121% compared to August 2019. Representing 21.4% of total registrations (a new record for the industry), without these vehicles,  August’s decline in registrations could have been far more damaging.

Munoz continued: “The difficult environment arising from the global pandemic, has led to one positive change – now more than ever, consumers are shifting from petrol or diesel cars to lower emissions vehicles, despite their relative expense.”

Hybrids accounted for 49% of EV total registrations in August, with their volume increasing by 86% thanks to the mild-hybrid technology available in some Ford, Suzuki and Fiat models. Pure electric cars followed this success, with 48,800 units, an increase of 111%. Growth was driven by Renault (+112%), Hyundai (+107%), Volkswagen (+97%) and Kia (+397%), with Tesla only growing by 11%. Plug-in hybrid electric vehicles (PHEV) found 44,700 new customers, with registrations up by 283%. This huge increase amounted from the success of premium brands, accounting for 55% of their volume, and the new Ford Kuga.

European Car Sales by Segment in 2020 (August)

European new car sales in August 2020 per segment were as follows:

European new car sales in August 2020 per segment

Despite the sudden popularity of electrified vehicles, SUVs have continued to gain traction, despite their higher price tags and expensive running costs. In August 2020, 4 in 10 new passenger vehicles registered in Europe were SUVs – this being 358,100 units, a decrease of just 12%. This decline was in sharp contrast to the 20%, 35%, or 44% decrease posted by midsize cars, city-cars and MPVs respectively.

In August, demand for the smallest SUVs totalled 147,000 units, down by 13% from August 2019. The most successful models were the Peugeot 2008, Renault Captur and Volkswagen T-Roc. Similarly, in this segment, the models that gained the most traction were the new Peugeot 2008, Hyundai Kona and Ford Puma. The compact SUVs registered 144,700 units, down by 9% over the same period. The Volkswagen Tiguan led the group but saw a decrease of 19% in registrations, while green rivals like the Toyota C-HR and Kia Niro posted large increases.

Best-Selling Car Models in Europe in 2020 (August)

The best-selling car models in Europe in August 2020 according to Jato were as follows for all models, hybrid, plug-in hybrid, and battery-electric cars:

The best-selling car models in Europe in August 2020 according to Jato were as follows for all models, hybrid, plug-in hybrid, and battery-electric cars:

While the Volkswagen Golf led the group once again with 22,400 units, big success was seen for French manufacturers. PSA and Renault Groups were able to position 6 of their models in the top 10, leaving just 4 positions for Germany. (Provided Opel is seen as French and Skoda German.) Munoz added: “We usually see a monopoly of German models in the top 10. The current outbreak is presenting a new opportunity for dominance in the market, demonstrating more consumer appetite for small French vehicles than previously witnessed.”

Outside of the top 10, the Ford Puma secured 16th position with 11,300 units – gaining the highest market share during August. The Kia Niro, boosted by its new electric model, also recorded a huge growth of 107% year-on-year – the 29th best-selling vehicle, with 7,900 units registered. The BMW 1-Series’ volume rose by 96%; Mercedes GLC saw an increase of 64%; Renault Zoe was up by 113% and Volvo XC40 rose by 82%. Skoda registered almost 6,000 units of its small SUV Kamiq, and the Fiat Ducato saw its demand soar, up by 70%, becoming the best-selling van of the month.

Further down the list, Nissan almost doubled the registrations of the Juke; Kia posted 3,700 units with the Xceed; Mazda registered 3,500 units of the CX-30; Audi Q3 Sportback registered 2,518 units; volume increased by 73% for Audi E-Tron; and BMW registered 1,727 units of its Series 2 Gran Coupe.

European New Car Market in 2020

Sales and Market Analysis: