Car sales across Europe’s largest economies have today fallen on the same period last year, emphasising the dramatic impact of car scrappage schemes as a stimulus for car sales across the Eurozone.
Manufacturers Toyota and Fiat reported a stark downturn in their sales figures, reporting around 20% fewer units sold than on the same period last year. Ford also reported similar findings on the period, as consumers shy away from purchasing new cars in the current economic climate.
New car sales on the whole throughout the Eurozone were over 9% down on the year, with France reporting around an 8% decline and Germany topping a hefty18% decline. Spanish car companies reported the most significant downturn in business, with an almost 30% reduction in new car sales from last year.
The news can be seen as a stark reminder that consumer spending, particularly on considerable purchases, across the Eurozone is still far short of pre-recession levels. As a result, the impact for consumer confidence and business future outlook remains uncertain.
But analysts are suggesting that the fall away in car sales could be attributed to the effectiveness of the car scrappage schemes, deployed across the Eurozone by governments as an economic stimulus, and to encourage sales in the car industry which would otherwise be difficult to come by.
The car scrappage schemes, which were used as a means of generating consumer spending during the recession, allowed consumers to trade in their old cars for discounts on new models.