French car industry group La Plateforme Automobile expects car sales to reach normal levels in June after strong indications that government incentives are helping to pull the sector out of a deep downturn.
Data from this group show that the pace of registration of new cars is close to the level from June 2019. Group director Mark Morturo said that the last days of the month are very important, but that there are clear indications of a re-emergence of the market.
Car production in France is currently at 60% of pre-crisis levels, up from 40% at the end of last month.
The European car industry experienced a sharp drop during the corona virus pandemic, and sales fell by a record 25% year-on-year. The sales result at this time is the lowest since 2013.
On a monthly basis, the worst seems to have passed. The number of new car registrations in Europe decreased by 57% in May, while in April the decline was 78%. In France, sales were down 50% in May and a whopping 89% in April.
Carmakers including Renault, PSA and Volkswagen are preparing for second-quarter business results, which are expected to be very poor again. France, Germany and Spain have adopted aid packages for the car industry, and the British association of manufacturers has also asked for support.