Europe's car market: recovery is slowing - financial expert analyzes lower growth in September.

Europe's car market: recovery is slowing - financial expert analyzes lower growth in September.

The European car market recorded growth for the 14th consecutive month in September. According to the European manufacturers' association ACEA, 861,062 new cars were registered, an increase of 9.2 percent compared to the same period last year. However, growth in September was lower than in previous months. Rising interest rates and the economic slowdown mean that many customers are currently foregoing the purchase of a new car.

Despite the positive development, the car market is still far from its pre-corona pandemic level. Since the beginning of the year, new registrations have increased by 16.9 percent to a total of eight million vehicles. However, in the comparable period of 2019 there were ten million vehicles. With the exception of Hungary, all markets have recorded growth since the beginning of the year. Italy recorded an increase of 20.5 percent, followed by Spain with 18.5 percent, France with 15.9 percent and Germany with 14.5 percent.

According to a report by www.n-tv.de,

Impact on the market and the financial industry

The slowing recovery in Europe's car market suggests that economic conditions for customers are worsening. Rising interest rates have a negative impact on borrowing costs and could cause potential car buyers to refrain from ordering a new car. The economic slowdown could also cause customers to be more cautious about their spending and postpone major investments such as buying a car.

The impact on the market could result in lower demand for new cars and, as a result, declining production and sales by automobile manufacturers. This could lead to financial losses, particularly for those companies that are heavily dependent on the European market. Financial institutions that offer auto loans could also be affected by reduced demand and potentially face higher loan default risks.

Overall, developments on the European car market indicate that the economic situation is becoming more difficult and this could also have an impact on the financial sector. However, precise quantification of the impacts will only be possible once more data becomes available.