LMC Automotive European Passenger Car Sales Update (February 2023)



  • The Western Europe PV selling rate climbed from 10.7 mn units/year in January to 11.7 mn units/year in February 2023, aided by improved performances in Germany and the UK. The raw monthly registration figure of almost 800k units resulted in a year‐on‐year (YoY) growth of 11.3%.
  • The German PV selling rate for February 2023 improved to 2.9 mn units/year, from 2.6 mn units/year the previous month. For the UK, the PV selling rate increased for a second month to 2.5 mn units/year, from 2.1 mn units/year in January. The French PV selling rate remained stable at 1.6 mn units/year – the same performance as seen in January. Similarly, the Italian PV selling rate remained flat from January to February at 1.4 mn units/year. The PV selling rate for Spain slipped from 900k units/year in January to 870k units/year in February.
  • While we expect YoY growth for Western Europe in 2023 on the back of a weak 2022, we still see supply constraints dominating this year. Underlying demand faces challenges too, with many the West European countries currently facing recessionary conditions and weak growth thereafter. In recent months though, consumer sentiment has become a little less pessimistic, and with a backlog of orders, we still view that a faster recovery in production this year would be supported by demand. However, it remains clear that rising costs of living and elevated levels of inflation seen across the region pose a downside risk to our forecasts.