ExpertEye European Automotive Report Q1 2017 | Page 11

Passenger car sales growth has yet to increase cars per capita above record levels
The big five European markets currently make up 73% of all new
car sales and yet, despite the growth in sales this decade, only one
of them, the UK, registered more cars last year than they did
.
New passenger car sales per thousand population
60.0 60.0
50.0 50.0
40.0 40.0
30.0 30.0
20.0 20.0
10.0 10.0
0.0 0.0
before the crisis.
Both Italy and Spain are well below their highest ever years, being
30% and 27% lower than their all-time pre-crisis records
respectively, whilst Germany and France are 19% and 13% behind
their highest years. Even with 9 countries in the EU28 and EFTA3
recording all-time records in 2016 the area is still some 6% down
on its 2007 best year. However, between 2007 and 2016 the
population of these 31 countries has increased by 2.2% according
to the World Bank’s population data.
Whilst this means there remains additional sales volume capacity
the challenge for OEMs is how to get more people to buy cars at a
Total EU28+EFTA*
Italy
UK
France
Portugal
Germany
Spain
Source: ACEA.BE, World Bank: Population Total, Bowkett Auto Consulting Ltd
time where personal mobility is set to take over from car ownership.
Millennials are starting to shy away from car driving and ownership. A 2016 report by ThisIsMoney.co.uk stated that the number of 17-20 year
olds sitting their driving test has fallen by 21% in just nine years. Particularly for younger buyers, 17-24 yr. olds, the car is just another
commodity vying for their monthly income. The report also cites a Compare the Market study which showed that the average first year of car
ownership costs a young car owner £4,750, that is £13 per day irrespective of whether the car is used. Even for the 25+ age group the average
cost is £10.91 per day. We also have autonomous cars set to be launched in 2021 by the likes of Volvo, BMW, Ford and Toyota which then
raises the question about why own and drive a car? Utilising a car club or someone like Uber means you could just pay on use instead.
European Automotive Report - 2017 Quarter 1
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