Italys Economic Rebound Holds Promise for Minicar Sales
Published By : 10 Aug 2015 | Published By : QYRESEARCH
Economic rebound in Italy and the arrival of the revamped Fiat 500 will aid pull minicar out of a plunge, which led the segment to plunge to a five-year low in 2014, as per predictions from analysts at HIS Automotive.
The sales of European minicar dropped by 32% to 1,125,160 million in 2014 as compared to 2009, with Italy registering a drop of 50% which was 244,642 in absolute numbers for the period, as per IHS figures.
Although, analysts at IHS predicts that sales of minicar in Europe is expected to rise to 1.2 million in 2015 and 1.25 million next year. This is because the volume in Italy, which is the number 1 market in Europe for entry-level models, is expected to rise to 260,000 in 2015 and 300,000 in 2016.
However, the numbers are way below the 500,000 minicars that were sold in Italy in 2009, which led to artificial inflation of demand due to a car scrapping program which is subsidized from the government.
Similar other schemes that were used across Europe to shoot sales at the height of the financial crisis, shot total minicar sales to 1.65 million five years ago.
In Italy, the rebound of the minicar sales is expected to be driven by improving economic climate and launch of the revamped version of the 500. The model is Fiat’s high end, high priced minicar, which is the best-seller in Europe in the segment, as per statistics from JATO Dynamics.
Fiat is also claiming second place in segment with the more affordable, practical Panda. The sales of Panda in Europe has increased by 11% which is little above 76,000 through May.
The sales of the Fiat 500 has also been registered a hit outside its home country, which has been ranked as the best-selling care in the U.K. and number 10 in the overall Europe car market.