The European auto market grew in August for the first time in 13 months, although the gain may be
temporary as record inflation and an unprecedented energy crisis threaten to delay car buying.
Car registrations rose by 3.4 percent last August, to reach 748,961 cars, according to the European Association of Automobile Manufacturers. Despite this rise, the performance of car companies is still much lower than its levels before the outbreak of Corona.
German Mercedes-Benz cars were among the best performers, with sales jumping 16 percent year-on-year.
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Car production in Turkey fell 13 percent in August
Abu Dhabi builds electric vehicle assembly facility in Kizad
And Bloomberg reported that the auto industry is witnessing signs of improvement, with the beginning of the receding of some obstacles related to supply chains, such as the electronic chip shortage crisis. However, record inflation rates and a slowing global economy cast a dark shadow over the sales outlook.
Consumers are concerned about rising energy prices and the risk of power outages with Russia reducing gas shipments, which makes them reconsider the decision to buy a new car.
Expectations indicate that higher energy prices and interest rates will put pressure on car buyers and may limit the rise in car prices, which witnessed a significant increase when the shortage of semiconductors led to a lack of car supply.
European Central Bank officials expect to increase borrowing costs again at their next meeting after raising interest rates during the past week by a large percentage.
German Mercedes-Benz cars were among the best performers, with sales jumping 16 percent year-on-year.
Related news
Car production in Turkey fell 13 percent in August
Abu Dhabi builds electric vehicle assembly facility in Kizad
And Bloomberg reported that the auto industry is witnessing signs of improvement, with the beginning of the receding of some obstacles related to supply chains, such as the electronic chip shortage crisis. However, record inflation rates and a slowing global economy cast a dark shadow over the sales outlook.
Consumers are concerned about rising energy prices and the risk of power outages with Russia reducing gas shipments, which makes them reconsider the decision to buy a new car.
Expectations indicate that higher energy prices and interest rates will put pressure on car buyers and may limit the rise in car prices, which witnessed a significant increase when the shortage of semiconductors led to a lack of car supply.
European Central Bank officials expect to increase borrowing costs again at their next meeting after raising interest rates during the past week by a large percentage.
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