Orders remain full and should contribute to earnings through early 2023, according to Bloomberg Intelligence.
Analyst LMC The auto industry expects high inflation, declining consumer confidence and household growth to hit demand in the coming months. “For 2023 he expects to comfortably beat 2022, but is a little more cautious,” said the analyst, who cut his sales forecast for Western Europe to below 11 million units.
Some manufacturers are already sounding the alarm about the impact of rapid inflation. Volkswagen warned this week that sales of electric vehicles in Europe have been “off track” in recent months as higher energy prices began to hit demand.
High-end luxury cars have been relatively resilient this year, with automakers benefiting from backlog orders that have accumulated during the supply chain crisis.
Kepler Cheuvreux expects Western European registrations to decline overall by 5.3% in 2022. Kepler analysts wrote in a Dec. 13 note that registrations next year are likely to be well below pre-pandemic levels.
Bloomberg contributed to this report