The European Automobile Manufacturers’ Association (ACEA) has revised its 2020 forecast for passenger car registrations down by 25% in light of the impact of COVID-19 on the market, calling on governments to step in with scrappage schemes to increase demand and spur recovery.

In terms of volumes, ACEA’s forecast for 2020 represents the lowest number of new cars sold since 2013

This effectively means that the industry association expects car sales in the European Union to tumble by more than 3 million from 12.8 million units in 2019 to some 9.6 million units this year.

In terms of percentage change, the outlook represents the sharpest drop ever witnessed by Europe’s automobile sector.

The EU market has already contracted by 41.5% so far this year since COVID-19 first impacted it. The situation is expected improve, however, with lockdowns eased across the region.

“ACEA maintains hope that this dramatic scenario can be mitigated through fast and strong measures by the EU and national governments,” stated ACEA director general, Eric-Mark Huitema.

“Given the unprecedented collapse in sales to date, purchase incentives and scrappage schemes are urgently required right across the EU to create much-needed demand for new cars. In the interest of our industry and the wider EU economy, we are calling for the necessary political and economic support – both on the EU as well as the member state levels – in order to limit the damage to production and employment over the months to come.”