The number of new passenger car registrations declined by more than 2.8 million units between 2006 and 2014. Due to high unemployment and financial stability, the market is not expected to regain lost ground before the end of 2020.

1. ©2014 Aranca.All Rights Reserved.www.aranca.com
If you wish to reproduce or use this infographic in any format,please email us at syndicate@aranca.com
Compiled by: Darsh Lathia
High unemployment rate and financial instability in European nations have dented the sales of
passenger cars in the past decade and the market is not expected to regain lost ground before
the end of 2020. Owing to intense pressure of competition in the home market, foreign markets
are looking more attractive from a trade perspective. The huge demand from Asian countries for
passenger cars is changing the trade flow and the automotive value chain. The passenger car
manufacturers in Europe need to restructure and adjust capacity to match demand from foreign
countries better.
Across the globe, a majority of countries are setting stringent greenhouse gas targets as well as air
quality rules for passenger cars. As a result, passenger car manufacturers are required to develop
a portfolio of propulsion technologies, dominated by advanced combustion engine technology. In
addition, they should add more value in alternative powertrain concepts (such as electric and fuel
cell vehicles) and innovative solutions for safer and cleaner passenger cars.
Aranca’s Views
2006-2014
Figures in million units
1995-2012
Figures in actuals
Passenger Car Density per 1,000 Inhabitants - A Quick Look at Some European Nations
Passenger Car Density per 1,000 Inhabitants in EU
2012Figures in actuals
2014Figures in actuals
Note: Registrations of new passenger cars is a proxy for sales in the European Union
CAGR (2006-14): -2.4%
YOY
(2014-15): 3%
New
Passenger
Car Registrations
in Europe*
15.8 16.0 14.7 14.5 13.8 13.6 12.5 12.3 13.0 13.4
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015E
14.4
1.1
0.4
14.4
1.2
0.4
13.2
1.2
0.4
13.3
0.9
0.4
12.6
0.8
0.4
12.3
0.8
0.5
11.3
0.8
0.5
11.1
0.8
0.5
13.0 13.4
EU15 EU10 EFTA
Note - * Europe = EU27 + European Free Trade Association (EFTA);
EU27 = EU15 + EU10
EU15 = Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal,
Spain, Sweden, UK
EU10 = Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia, Slovenia
EFTA = Iceland, Norway, Switzerland
Data for Cyprus and Malta unavailable
E refers to Estimated
New Passenger Car Registrations in
Europe Dip 2.4%Europe’s well-developed automotive industry is suffering from overcapacity and fierce
competition pushing down both prices and profits. Consequently, car registrations are
dipping year after year. Between 2006 and 2014, fewer people bought new cars and
the number of new registrations declined more than 2.8 million units. Car sales today
are at levels last seen in early 1990s.
Luxembourg
663
Italy
621
Finland
563 France
512
Poland
486
Netherland
472
Czech
republic
448
Hungary
301
1995 2005 2012
380 448 487
EU15 Country
No.of
Plants
Austria 1
Belgium 4
Finland 1
France 14
Germany 25
Italy 10
Netherlands 4
Portugal 1
Spain 10
Sweden 3
United Kingdom 19
Total 92
EU10 Country
No.of
Plants
Bulgaria 1
Czech Republic 4
Hungary 3
Poland 2
Romania 2
Solvakia 3
Solvenia 1
Total 16
The European Automobile Manufacturer's
Association (ACEA) members assemble
passenger cars in around 18 European
countries
VW Group
25%
Renault Group
9%
General Motors
8%
Fiat Group
6%
BMW Group
6%
Daimler
6%
Toyota Group
6%
Hyundai
3%
Others
14%
PSA Group
11%
Ford
7%
Market Share
Europe produced 12.3 million cars in 2013, 17% of the 73.1 million
produced globally.
The sector is also a key driver of knowledge and innovation,
representing Europe's largest private contributor to R&D, with USD43
billion invested annually.
Europe's cars are the cleanest, safest and quietest in the world. Noise
from passenger cars has been reduced by 90% since 1970.
Key Facts
The demand for passenger cars from foreign countries, especially
BRIC (Brazil, Russia, India, China, and South Africa) nations, has led to
an increase in exports of passenger cars. In 2013, export of passenger
cars by EU nations rose 2.1% on year-on-year basis with 5.9 million
cars exported to foreign countries.
Drivers
There are barriers to internal trade within the EU restricting it to form a
single market for the development, production, sale and aftermarket
support for vehicles.
European labor market remains very weak, with more than 24 million
people unemployed across the 28-nation union. Due to
unemployment, people do not have enough funds to purchase new
vehicles.
Challenges
Source: European Automobile Manufacturers’ Association; OANDA Average Interbank Rate (January 01, 2013 to
December 31, 2013 Average) - Euro (€) to US Dollars ($) = 1.3279, Statista - Market share of selected car
manufacturers in the passenger car market in Europe in 2013, based on new registrations , The New York Times
- Auto Sales in Europe Rise for 14th Consecutive Month, Nov 18, 2014; Organisation Internationale des
Constructeurs d’Automobiles (OICA).
Passenger Car
Production and
Assembly Plants
in EU15 and EU10
Market Share of
Passenger Car
Manufacturers in
Europe 2013
Sales of passenger cars in Europe had reached a record 16 million units in
2007, but bottomed out in August 2013 at levels not seen since 1990.