Europe lost 4.3 million vehicles (PC + LUV) over 9 months 2020
- The loss of production of passenger cars (PCs) and light utility vehicles (LCVs) in Europe is estimated at 4.3 million units in the period of the first nine months of 2020 compared to the first nine months of 2019. The scope of this analysis Europe 29 countries including Great Britain, but without Serbia, Turkey and Russia.
- The PC + LUV production volume estimated according to Inovev would be 9,321,660 units against 13,610,526 units a year earlier. The difference is therefore 4,288,866 units. If we take into account only passenger cars, the difference is only 3,876,842 units, the estimated total being 8,186,537 units compared to 12,063,379 units a year earlier.
- This loss of production is mainly due to the Covid-19 crisis which caused the closure of most plants located in Europe during one month or two depending on the country and the carmaker. It can also be specified that the fall of global markets caused a significant drop in exports and the recovery starting in summer took place gradually and on new sanitary rules inside plants, which did not helped to restart more intensively the production during this post lock-down period. Consequently, stocks are very low, lower than usual, because during the lock down more vehicles were sold than produced.
- The production volume lost in 2020 cannot be cached up, because if plants can lose 30% of their volume as it was during the first nine months of 2020, they cannot produce 30% more than their maximum capacity. Especially as the market recovery is unlikely to be "V" shaped, but will be gradual and long over time.
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