Western Europe's Vehicle Sales Surge 16% in 2023 Despite Energy Crisis
Western Europe has witnessed a significant 16% increase in finished vehicle sales in 2023, despite challenges posed by the recent energy crisis. The automotive sector, however, faced operational cost hikes and concerns about competitiveness during the crisis in 2022.
In 2022, the energy crisis negatively impacted the EU automotive sector and its customers, as warned by Clepa. Companies like Eternal Power, BASF, Hydro Aluminium, and DuPont responded by securing sustainable energy supplies through green hydrogen production, long-term PPAs, hydropower, recycling, and grid sourcing. Despite soaring energy prices, lowering energy tariffs helped prevent operational costs from spiralling out of control in 2023.
The Samar Automotive Market Research Institute cautioned that the energy crunch threatened European automotive industries' survival in 2022. Finished vehicle and automotive components costs surged across major European markets in 2023, with transport equipment and labour costs being the primary drivers, not energy prices. Higher energy prices also contributed to a decline in consumer confidence and affected demand for electric vehicles.
European politicians declared the energy crisis essentially over at the beginning of 2023, allowing the automotive industry to recover and record a 16% rise in finished vehicle sales in 2023. Despite the challenges, European analysts' fears of eroded competitiveness in the automotive sector have not materialised, thanks to the industry's resilience and adaptability.
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