European car sales fall 23% on new emissions test
Passenger car registrations in Europe slumped 23% during September after new emissions test rules took hold, reversing gains made in August when car makers were hurrying vehicles out the door to beat the deadline.
The tougher testing methods are designed to produce results more in line with real-world conditions. Volkswagen will struggle to meet delivery targets this year because of the rules.
Daimler has also singled out the so-called WLTP (worldwide harmonised light vehicles test procedure) as an obstacle weighing on its business.
BMW, which hadn’t seen delays in getting its models ready for the new regime, issued a profit warning last month partly blaming pricing pressure from less-prepared competitors.
VW this week said delays stemming from the introduction of the new test will be resolved by the fourth quarter for its namesake brand.
The new car registration figures hit European shares. The Stoxx 600 Automobiles and Parts Index fell 1.3% at one stage in Frankfurt.
Landesbank Baden-Wurttemberg analyst Frank Biller sees September sales as “neutral positive” for the industry. August deliveries of new passenger cars jumped 30% in the EU and the European Free Trade Association (Efta) from a year earlier, according to data released by the European Automobile Manufacturers Association.
In the year through last month, sales are still up 2.3% at 12m vehicles. New WLTP testing procedures are applicable from September 1.
