On European car market there was optimism until mid-February. Then, with the invasion of Russia on Ukrainian territory, the projections all ended up in the trash. The conflict is heavy in terms of human, political and economic lives; it is not known how long it will last and how it will evolve. The war throws a stain on trade between European and Asian nations, and in a time like this, buying a car isn’t exactly the first thought. Just as happened with Covid, when he had forced the whole world into lockdown.
The European Association of Automobile Manufacturers (ACEA) had predicted that in 2022with excellent prospects on the Covid problem (scaled down by vaccines and the latest less warlike variants) and with some more hope on the semiconductor crisis, the auto market would have grown by 7.9%. Translated, registrations of new cars in the European Union would therefore have increased compared to 2021 up to 10.5 million units.
With this projection, the problem of the car market would not have been solved: the forecast figure was in fact already 20% below the pre-crisis sales levels of 2019. ACEA wrote: “In light of what we saw in 2021, with a market hampered by problems in the supply chain, electric charging cars have continued to gain overall market share, now accounting for almost 1 in 5 new cars sold in the European Union. However, the pace of infrastructure roll-out is currently lagging behind consumer demand for electric-charging cars“.
Now, with the situation between Russia and Ukraine in constant evolution, it seems impossible to imagine, especially for the populations who live in close contact at the border, an enormous increase in the market – especially for the electric car. Furthermore, by cutting bridges with Russia and its most economically gifted citizens, there could also be setbacks for the luxury car segment. A sector that up to now had resisted more than worthily to all the other crises.
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