Auto Sales Dive As Stimulus Ends

Posted on | September 28, 2010 | No Comments

Car sales nose-dived in August in much of the developed world as government scrappage schemes came to an end.

The LA Times reported that according to AutoData Corporation, US auto sales had the worst August in 27 years, plunging 21% in August compared to a year ago, from 1,262,197 units to 997,968.

Bloomberg quoted IHS Automotive as saying that vehicle sales in Western Europe are expected to slip to 12.5 million units, the lowest figure since 1995 and 8.2% lower than in 2009. Meanwhile, Reuters reported that new car registrations in Germany for August were 27% less than a year ago.

Reuters also reported that new cars sales in the United Kingdom fell 17.5% in August compared to a year ago. This was the second consecutive monthly fall in the UK.

Car sales in Japan, the biggest car market after China and the U.S., are expected to plunge 23% in the next six months according to the Japan Automobile Dealers Association, after a government subsidy program for fuel-efficient cars ended this month.

These poor auto sales figures confirm the general slow down in growth in the developed world in the third quarter of this year and perhaps also the the consumer’s lack of enthusiasm for spending on big ticket items as the possibility of unemployment increases.

Meanwhile car sales are still buoyant in emerging economies, despite measures taken to prevent over heating, reflecting the growth that is still evident in these countries.

Reuters reported that Indian passenger car sales jumped 33% to 160,794 units in August compared to a year ago, according to the Society of Indian Automobile Manufacturers.

The China Automotive Review reported that auto sales in China were up 56% in August when compared to a year ago and 15% up on July sales, according to data issued by the China Automotive Technology & Research Center (CATARC).

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