Two-digit growth in Brazil – Downturns in China and Russia – Distinct losses in India
The global automotive markets displayed a non-uniform development in July. Whereas the U.S. market was able to pick up speed for the first time this year, sales in Western Europe (EU15 & EFTA) were on the previous year's level. Sales slowed in Russia and China but picked up slightly in Japan while Brazil displayed two-digit growth. In India, in contrast, the market experienced a harsh setback.
In Western Europe new passenger car registrations remained at the previous year's level of 1.2 million units. The development of new passenger car registrations in the five largest single markets was highly non-uniform – up by 5 percent in Germany but only at the previous year's level in Italy. While France (-2 percent) and the U.K. (-4 percent) suffered a decline of one percent each, the Spanish market showed a two-digit decrease (-11 percent). After the first 7 months of the year, the Western European passenger car market had a volume of 8.9 million vehicles – a decline of 3 percent.
Last month, for the first time in 2019, the U.S. light vehicle market (passenger cars and light trucks) expanded: sales rose by 2 percent to 1.4 million new vehicles. From January to July 9.8 million light vehicles were sold (-2 percent). The trend to light trucks continues: since the start of the year sales of light trucks were up 2 percent while passenger car sales were down 9 percent.
In July the Chinese market recorded a decline of 4 percent to 1.5 million passenger cars. Since January the market volume has contracted by 13 percent to 11.4 million new vehicles. Sales of passenger cars have displayed a negative trend on the largest single market for 13 months now. VDA now foresees a market volume of 21.6 million new vehicles (-7 percent) for 2019 overall – 3 percent below its initial forecast of -4 percent.
In India sales of passenger cars declined by 31 percent to 200,800 in July. Moreover, the overall Indian economy is distinctly cooling down and financing conditions are now considerably less favorable. During the first 7 months of 2019, the Indian market had a volume of 1.8 million units (-13 percent).
New car business developed in a positive way in July with a growth of 3 percent (379,400 units). At the end of July 2019, the Japanese passenger car market was at the previous year’s level with 2.7 million units.
In Russia the market for passenger cars shrunk by 2 percent to 140,000 units in July. In the first 7 months of 2019, the market volume of 968,700 new cars sold was a good 2 percent below the previous year's level.
In July the Brazilian light vehicle market grew by more than 11 percent to 232,900 units – making it the third month in a row with two-digit growth. In the first 7 months of 2019, Brazil recorded 1.5 million new car registrations – 11 percent more than during the same period in 2018.
|July 2019||January-July 2019|
19/18 in %
19/18 in %
|Western Europe (EU15+EFTA) 1)||1,185,300||-0.2||8,856,500||-3.1|
Source: 1) National Associations 2) AEB 3) WardsAuto 4) JAMA 5) ANFAVEA 6) SIAM 7) CAAM
* Light Vehicles