Tragic October: 40 percent fewer cars were sold in Slovakia than in 2019 – PRAVDA.sk

In terms of car sales, Europe has had the worst October since statistics began. Year-on-year, car sales also fell in Slovakia, but not as extremely as in large car markets.

Photo: Skdoa Auto

In terms of car sales, October was bad especially for the Volkswagen Group and especially for the Czech carmaker Škoda Auto.

Sales of new passenger cars throughout the European Union not only continued to decline in October, but also reached “tragic” values. And we’re not trying to dramatize that at all. On the Old Continent, we have the worst October since the beginning of statistics. And the unpleasant thing is that the rate of decline in new car sales is accelerating.

While the number of cars sold fell by less than a quarter in September, it was almost a third in October. This is according to statistics from the European Automobile Manufacturers Association (ACEA). This states that less than 665,000 passenger cars were sold in the European Union in October, a decrease of 30.3 percent compared to October last year. Sales thus fell for the fourth month in a row. For comparison, in September sales fell by 23.1%.

Most EU member states saw a double-digit decline in sales. Of the four largest economies, the largest decline was recorded in Italy, where sales fell by 35.7 percent. In Germany, the decline was 34.9 percent, in France 30.7 percent and in Spain sales fell by 20.5 percent. Of the brands, the Volkswagen Group and the special car manufacturer Škoda Auto did not succeed significantly in October.

From this point of view, Slovakia is not so bad at that, but as the saying goes, “there is also a one-eyed king among the blind.” So what did car sales in Slovakia look like in October? According to the statistics of the Association of the Automotive Industry (ZAP SR), a total of 5,789 passenger cars (category M1) were sold in it. This represents a year-on-year decrease of 13.2 percent – in October last year, 6,694 cars were sold in Slovakia. This is not such a dramatic result compared to the largest car markets. However, let’s look at the “pre-pandemic” year 2019. In October, 9,436 cars were sold in Slovakia, which means that it is a decrease of 38.65 percent.

The situation is unlikely to develop well in the remaining two months, as the chip crisis is culminating and will soon not subside. At the Volkswagen Group, for example, they predict that the worst months and the sharpest decline in sales in their case will occur at the end of this year and during the first quarter of next year.

In addition, analysts say that the crisis is literally “knocking on the door”, which may ultimately prove even more serious than the current shortage of chips for cars. Magnesium, which cannot be replaced in the production of cars and cannot be pre-supplied because it oxidizes quickly, should become insufficient.

This light metal is found in a number of components. It is used in various alloys from which body panels, fuel tanks, brakes, crossbeams, wheel suspensions or the wheels themselves are made. Simply, wherever its advantages are appropriate. The problem is that 85 percent of magnesium comes from China. Due to the energy crisis, it radically limited its production. And the one that produces will go primarily to Chinese cars. If that really happens and we can’t find a replacement for Chinese supplies, it will be a real disaster for big carmakers in the first quarter of next year. We believe that this apocalyptic scenario will not happen in the end.

This is the Top 15 best-selling models in October 2021 and in parentheses is their preliminary ranking for the first ten months of this year:

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