Sales of luxury cars in China and electric vehicles in Europe were the two events that boosted European car manufacturers. This after 2020 was a bad year for the auto industry due to the Covid-19 pandemic, data from the companies showed.
Mexico has a significant share of several luxury car brands. Besides that the Mexican economy competes with China as one of the main trading partners from the United States.
China’s auto industry recovered quickly after its quarantines to address the Covid-19 outbreak. Meanwhile, in Europe, the manufacturers’ battle to meet tough new emissions targets helped electric vehicles (EVs) emerge from a marginal position.
Volkswagen, the world’s largest automaker, had a drop in sales of its main VW brand of 15% in 2020, compared to 2019.
2025 will be the key year for electric cars: experts expect that they will match prices with those of combustion and reach 30% of sales
Sales in China of the VW brand fell almost 10%. However, Volkswagen’s luxury brand Audi had its best fourth quarter. Full-year sales in China increased 5.4%.
The VW brand also saw how lGlobal sales of all-electric cars increased 197% from 2019 to 134,000. Although that only represented 2.5% of the total.
“2020 was a turning point for Volkswagen. It marked a breakthrough in electric mobility, ”said Ralf Brandstatter, VW Brand Director.
BMW and Mercedes-Benz rebound in China
Rival BMW posted a 3.2% sales increase in the fourth quarter and closed 2020 with a drop of 8.4%. But the automaker, which also owns the Mini and Rolls-Royce brands, said that sales increased 7.4% in China. This was its best performance since it entered that market in 1994.
Meanwhile, Daimler’s Mercedes-Benz brand, which reported its results on Friday, remained the world’s best-selling luxury carmaker for the fourth year in a row. While global sales fell 7.5%, the brand’s sales premium in China they increased by 11.7%, inclusive an increase of 22% in the fourth quarter.
Competition increases in the electric car sector
The race now is to develop electric vehicles to meet emissions goals carbon. Also to challenge market leaders, like Tesla.
Major car manufacturers need to produce a large number of electric vehicles to achieve economies of scale. Also, to make them profitable, and 2020 gave some hope that they may be on track to achieve this.
Electric vehicles were the only Good news in an otherwise bleak 2020 for France’s Renault.
While Renault group sales fell more than 21%, its sales of electric vehicles in Europe increased more than 101%. The company confirmed that it had met its EU emissions targets for 2020, thus avoiding fines.
BMW said global EV sales were up 32% compared to 2019. Represented 15% of sales in Europe. “It means that electric mobility is also a significant growth engine for the company in absolute terms.”
With information from Reuters.