A number of automakers, including Volkswagen and Stellantis, have posted significant sales increases for the month of April - and Q1 in general - as the world attempts to shift away from the coronavirus pandemic.
A number of factors, including reopening showrooms, has led to a boom in car sales during the first quarter. Photo: 'S' / Flickr Licence CC BY-NC
Sales increases have been guided by the launch of new electric vehicle models and early coronavirus recovery in key markets such as China as well as the vaccine response in the EU and US, which also represent key markets for major automakers.
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VW has not only seen its 10th consecutive month of growth but also its largest-ever sales margin for the month, seeing a 97.5% increase compared to the same period last year.
The company likewise saw record growth in January, representing a sales increase of 30.2% following on from a 6% increase in December.
In total 62,724 cars were sold, up from 31,760 cars in the same period last year, driven by a strong demand resurgence in the US and EU. The company has already continued to monitor sales increases in China in the months prior.
Volkswagen. Credit: SImon / Pixabay
VW has seen strong sales for months owing to its early adoption of electric vehicles and a demand surge in China. Credit: Simon / Pixabay
In the US alone sales surged by 185.5% driven by strong demand for models such as the XC90 and XC60.
European sales were aided by new launches under the company's "Recharge" line as charging vehicles see an increase in demand as a number of private and public sector players look to make personal charging more accessible.
Meanwhile, Stellantis has posted earnings of roughly €37 billion in its latest quarterly report released on Wednesday.
The automaker has seen a net revenue increase and has reported growth in all areas. This is the first quarter the company has seen since it was formed as part of a merger between Fiat Chrysler and PSA in January.
The commercial launch of all-new Vauxhall and Opel Mokka began in March 2021 to European consumers, representing a return to the market after being discontinued in 2019. Further launches in Q2 and Q3 are expected to continue to drive up sales.
“In our first quarter since the Merger, Stellantis posted strong Q1 2021 revenues with the diverse brand portfolio driving increased volumes, positive pricing and improved product mix, despite the headwinds from the global semiconductor crisis," Stellantis CFO Richard Palmer said in a statement.
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BMW has also posted a record sales increase for Q1 2021, seeing sales surge by 33.5%.
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BMW has also been looking into expanding recharging networks across Europe.
It also reports it saw year-on-year sales increases in all major markets.
The majority of deliveries came through the BMW brand itself. The company reported this as being down to the popularity of the firm’s X range of SUVs, as well as 5 Series and 3 Series sales increasing by more than 40%.
141,583 new cars were registered throughout Q1 as showrooms begin to reopen, which is set to continue to boost car sales going into the future, according to the Society of Motoring Manufacturers and Traders (SMMT).
The firm has revised the forecast upwards to 1.86 million registrations by end of the year, up 13.9% for 2020.
April saw a 30-fold increase in new car registrations from the same period but volumes still saw a -12.9% drop from the 10-year average.
It is likely this is due to the effects of the first coronavirus lockdowns, which came into effect as April 2020 loomed.
Overall registrations for 2021 now stand at 567,108 units, some -32.5% down on the average recorded over the past decade.
Similarly, there were 30,440 vans registered in April, the highest-ever total for the month since records began, representing a 23.3% increase on the five-year average.
"After one of the darkest years in automotive history, there is light at the end of the tunnel," said Mike Hawes, the chief executive of the SMMT, primarily referring to the massive sales increases seen in all major marketers, but primarily focusing on the UK.
He added: "A full recovery for the sector is still some way off, but with showrooms open and consumers able to test drive the latest, cleanest models, the industry can begin to rebuild. Market confidence is improving, and we now expect to finish the year in a slightly better position than anticipated in February, largely thanks to the more upbeat business and consumer confidence created by the successful vaccine rollout.
"That confidence should also translate into another record year for electric vehicles, which will likely account for more than one in seven new car registrations."
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He mentioned that businesses are investing in new vehicles as they grow in confidence and expressed that a more economically positive environment world would come owing to vaccine distribution.
"With a fragile supply chain still subject to [the] risk of disruption and ongoing Covid restrictions, there is some way to go before we can say business is back to normal, but after a very difficult year, the outlook is much brighter," he added.
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