Diesel cars account for 35% of the total European car market, the lowest level since 2001.īrexit: What it Means for the European Auto Industryīrexit must feature in this story, but rather than talking about politics, That’s a decline of 18% from 2017, when 6.76 million diesel cars were registered. This decline is headed by a 30% decline in the UK, with 5.59 million registrations in 2018. No wonder demand for diesel fell in 20 of the 27 European countries according to an article in autocar.
They are much faster than what the industry can cope with”, as one Automotive Executive shared in a conversation with Flock. “The biggest challenge for the automotive industry will be to cope with mega cities car policies, as opposed to national policies. Diesel is seen as a “dirty” technology, which has been worsened by governments penalising diesel owners with higher parking costs, higher tax, and even banning some diesel cars from our streets. One can argue that it started with the VW Diesel scandal, but it’s got a lot worse as public perception of diesel engines is now at an all-time low. The European love affair with diesel engines has come to an end, and it’s an ugly break-up so far. Good for those with a strong product offering in this segment. On the positive side, the 1.3m electric and hybrid cars that were sold by China last year, is up 62% on 2017 (The Sunday Times). This dramatically underlines that the source of crucial profits for the automotive industry looks like it has dried up. For the first time in a long time, sales of passenger vehicles in 2018 were down by 4.1% totalling 23.8m. There is a growing second-hand car market, there’s been an improvement in public transport and an increasing popularity of car-sharing services, making consumers in China think twice about the high investment and commitment of buying a new car – according to analysts at the Financial Times.Īnd the sales figures are alarming: most car manufacturers, mainly in the premium segment, have counted on the year-on-year growth to continue in double digits, but this is not happening anymore.
Trump’s on and off trade-war with the Chinese certainly doesn’t help, not to mention the fact that car ownership has reached a saturation point. Declining Diesel sales, Brexit, changing consumer behaviour and an economic downturn in China – it will be a tough year! One thing is for sure there are many looming challenges facing the industry. Whereas the Center for Automotive Research in Duisberg-Essen, Germany, puts 2019 sales slightly higher at 82.9 million. The experts are in debate, with investment bank Morgan Stanley expecting global auto sales to slip 0.3% to 82.1 million in 2019. Whilst the last couple of years have seen some strong growth, 2018 seems to have marked a turning point, with automotive sales expected to fall slightly this year. It looks as if the party in the automotive industry is over. We understand the issues affecting your industry such as Connected Customer Experience, Electric Vehicles, Mobility, and Retail Models – so the need to transform is evident. Flock is founded by world-class global marketing leaders who design marketing transformation solutions getting you better and more marketing for less money.
Our services span across organisation design, agency eco-systems, ways of working, mar- tech and capabilities. Flock is the only Marketing Transformation Consultancy that, over the last two years, has worked with 6 of the largest Car Manufacturers in the world including Ford, Toyota, Lexus, Honda, VW Group and Mazda.
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