The forecaster said that the West European market is slowing as a result of the ‘toxic mixture’ of falling asset prices, slowing global and European economic growth, financial crisis and rising inflation. The German market posted a result consistent with the recent past but one that hints that recovery is now on hold, after some months of steady improvement. The outlook remains stable in Germany, albeit with only slow growth expected this year.
The Spanish market now looks likely to fall by up to 20% in 2008 and the decline should continue into 2009, JD Power said. The situation in Italy is little better than in Spain, though the scale of the market collapse in June is somewhat smaller. A double-digit decline in car sales looks likely this year with recovery some way after 2009. The UK market came in lower in June on a seasonally adjusted basis, reflecting the more difficult economic backdrop. JD Power continues to forecast a drop in UK sales of 3-4% this year.
China’s domestic car market reached sales of 3.3m passenger vehicles from January to June, up 14.2% from the corresponding period of last year but lower than earlier expectations of growth of 20%, according to statement by the China Passenger Car Association (CPCA).