Standard Profil - comment

Some positive headlines this morning in the Automotive Industry but they need to be put into context. In August, European registrations finally returned to growth, up 4%, bringing an end to 13 months of consecutive decline. However, the result remains far below historic levels and is partially explained by the displacement of registrations from July to August. The overall market dynamic has not changed and 2022 forecasts for Europe remain unchanged. The market is seeing easing supply-chain constraints, mainly semiconductor availability.

More worrisome is that we are now seeing some downgrades to FY23 numbers on the back of spiralling energy costs, which is reducing consumer confidence.