Auto Stocks On Watch After Ugly European Vehicle Registration Data Shows 22% Plunge

Tyler Durden's Photo
by Tyler Durden
Tuesday, Jan 18, 2022 - 05:10 PM

Auto stocks will be on watch to start the new week after data from Europe showed new car registrations plunge in December, marking a 6th month in a row of declines.

Car sales in Europe fell 22% according to Bloomberg data released Tuesday morning. 950,218 vehicles were sold, according to the European Automobile Manufacturers’ Association.

The data solidifies that new car sales were down 1.5% for all of 2021, with Bloomberg calling the year the "worst ever since the association started tracking the market in the early 1990s".

Parts suppliers and auto makers like Stellantis, Daimler, BMW, Volkswagen and Renault will all be on watch for the upcoming week. 

According to ACEA data provided by Bloomberg, almost all major names finished 2021 with sales lower than 2020. The biggest plunges in December came from VW Group, who saw sales drop 30.4% y/y, Stellantis, who saw sales drop 23.8% y/y, Ford, who saw sales drop 38.2% y/y and Nissan, whose sales dropped 30.5%.

Recall, November's sales numbers were also the worst they had been since data collection began. 

New registrations plunged 17% in November, coming in at 864,119, at the time the worst number since the European Automobile Manufacturers’ Association started tracking figures in 1993.

Recall, we wrote in September that the heads of many auto manufacturers have suggested that the semi shortage "may not just disappear" in 2022.