VW, Toyota help Europe sales rise 17% in November | Jobs Reply

Order books remain full, which should help drive revenue in early 2023 But the industry has yet to recover to pre-pandemic levels and likely won’t be able to avoid a third consecutive year of declines, according to Bloomberg Intelligence.

These analysts LMC Automotive expects higher inflation, declining consumer confidence and stretched household budgets to hit demand in the coming months. “We estimate 2023 will comfortably surpass 2022, although we are a bit more cautious,” the analysts said, trimming their sales forecast for Western Europe below 11 million.

Some manufacturers are already sounding alarm bells about the effects of spiral inflation. VW flagged this week that electric-vehicle sales in Europe had “fallen off track” in recent months as rising energy prices began to hit demand.

High-end luxury vehicles have been relatively resilient this year, and automakers are still benefiting from backlogs accumulated during the height of their supply-chain crisis.

Kepler Cheuvreux expects an overall 5.3 percent decline in Western European registrations for 2022, including a 15 percent decline for light commercial vehicles, which are typically more sensitive to macroeconomic downturns. Registrations are expected to remain below pre-pandemic levels next year, Kepler analysts wrote in a Dec. 13 note.

Bloomberg contributed to this report

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