European car market falters as Renault sales pick up pace
As the overall European new car market continues to slide, Renault is proving the big winner, according to the latest monthly analysis from JATO Dynamics.
European sales were down 8.6% overall in May, as a result of continuing poor sales in Germany, with the YtD improvement now just 2.9% vs. 2009, a decline compared to previous months. A traditionally strong sales base for Volkswagen Golf, Opel Astra and Ford Fiesta, Germany’s changing competitive landscape is benefitting other brands in the top 10 sellers.
David Di Girolamo, Head of JATO Consult commented: “The economic waves that are buffeting the European countries are now starting to effect sales of brands that traditionally enjoyed loyalty in their “home” markets, allowing other brands to benefit and establish a stronger foothold.”
Brand Performance
Both Ford and Volkswagen are suffering heavily from the German market downturn, which was a 35.1% decline in May. Renault’s contrasting good fortune has helped the brand retain its second place above Ford in third and YtD have closed the gap to 13,684 units in sales.
Ford’s third place has been regained from Peugeot, which was unable to sustain its April gains.
Model Performance
The biggest net winner is Renault and its success has been driven largely by Clio sales, particular notable performances in Italy (+83.8%), the UK (108%) and its home market France (37.5%) contributing to its overall 43.3% rise YtD.
This success contrasts with the current performance of key segment rivals, with the Ford Fiesta and Peugeot 207 both down over 22% in May when compared with the same month last year.
Building on the Clio’s performance the French brand adds Mégane to the 3 models in the top 10 recording an increase in the month.
National Trends
As Europe slips to be only 2.9% ahead of the regions 2009 YtD performance, Germany and Greece feature amongst the largest contributors to the decline in May, reflecting the wider economic issues that have tied these two countries together.
Italy and France have also experienced a dip joining some Central and Eastern European countries in a lack of consumer confidence pervading the Euro-zone.
Concludes David Di Girolamo: “The current situation is significant, in not being one of the industry’s own making as it had hoped that the economy would have recovered by now. Without the assistance of scrappage, national markets and brands can only hope to ride out the storm and wait for more favourable and stable economic conditions.”