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Decline in small car demand and supply in Europe



Over the next three to five years, European car sales will fall to less than one million a year predicted by LMC Automotive. Manufacturers are concerned about the outlook for automobiles in this sector as the decline in demand is driven by stringent environmental standards and safety requirements.

The profitability of urban cars is marginal, but the cost is steadily increasing. Opel has already announced that it will minimize the production of Adam and Karl models. Other brands such as PSA and Volkswagen are easy to follow their example.

VW Chief: Small electric cars are considerably more expensive than conventional ones.

VW Chief: Small electric cars are considerably more expensive than conventional ones.

They will not be available to low-income people, says Hans-Dieter Poch.

At the Detroit Motor Show, Volkswagen Group CEO Herbert Deeus will hit Volkswagen through emissions regulations by 2021! It will rise to about 3500 euros. And now the five-door model costs 10,625 euros. "We do not know how many customers can buy our models at the basic level," said Chief Executive Officer of Automotive News.

The hatchback, the Fiat 500, remains the most demanding model in this segment. And the old Fiat Panda is the second. This is partly due to the fact that Italy is the "smallest" country in the EU.

What are the best-selling small and urban cars in the world?

What are the best-selling small and urban cars in the world?

The smallest segment has a new leader

Two new design editions of the Toyota Aygo hatchback will be featured in the Geneva exhibit: x-style and x-cite. The interior is designed to blend in with the appearance and abundance of equipment and will be on sale at the end of the exhibition.

The situation is different in public service announcements (PSAs). City cars Peugeot 108, Citroen C1 and Toyota Aygo are produced in the same factory in the Czech Republic. Toyota said it is buying PSA shares at its plant in November 2018. The plant is expected to completely control Toyota in January 2021. The Japanese promised to continue producing the trio, but the French can give up the compact car.

PSA and Toyota stop total production of compact cars.

PSA and Toyota stop total production of compact cars.

However, they continue to cooperate with light commercial vehicles.

However, market participants and experts are unanimous that the A-segment of Europe will always exist: These are the cheapest cars to attract new customers. There are no conflicts with this market class.

Conversely, sales of several models are increasing. For example, Renault Twingo and Kia Picanto succeeded. The effort to boost sales is a sport and off-road version, and the switch to electricity-driven will open up new horizons. It uses the Bulgarian version of Auto Motor und Sport.


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