European Automotive Industry in the Century of Asia

The total value of cars imported into the EU fell by less than a fifth in 2020 but increased by 3.4% in 2021 compared to the previous year. The share of the two largest importers (the UK and the US) fell by 11% and 22%, respectively. South Korea increased its passenger car imports by 29% in value compared to the previous year. China came close to the prominent importers, recording a 234% increase in passenger car imports in 2021 compared to 2020, worth EUR 5.9 billion. Table 2.7: Passenger car imports into the EU27 (by value in EUR million) 2020 2021 Change United Kingdom 9,314 8,249 -11.4% US 10,480 8,144 -22.3% South Korea 5,511 7,105 +28.9% Japan 8,112 7,004 -13.7% Turkey 6,330 6,138 -3.0% China 1,766 5,905 +234.3% Mexico 4,109 4,590 +11.7% Morocco 2,191 2,839 +29.6% South Africa 2,380 1,918 -19.4% Switzerland 271 325 +19.8% Source: Eurostat, ACEA 2.3 New Passenger Car Registrations in the EU The global financial crisis adversely affected the development of new car registrations in the European Union, leading to a decline until 2013. The situation was similar in individual EU Member States, where the crisis led to a decline or at least a slowdown in the growth of car sales and registrations as demand for new cars fell significantly. Some EU Member States tried to counteract this decline with a scrappage scheme, i.e., a financial incentive to encourage the population to replace their old car (one of the conditions for scrapping a car with a fixed minimum age) with a new one. This financial incentive (ranging from several hundred to several thousand euro) was also intended to have a specific anti-crisis effect. For example, the scrapping scheme was used in Austria (an incentive of EUR 1,500), Slovakia, the UK, Italy, and other countries that are also important car producers. Germany was no exception, allocating EUR 5 billion to the scrapping scheme. Owners of cars at least nine years old received EUR 2,500 when they scrapped their car and bought a new one. As a result, the scrappage scheme helped to boost sales in Germany in 2009. However, after it ran out relatively quickly, sales fell again. Therefore, the reversal of the downward trend in new registrations was mainly due to the recovery from the crisis and economic growth with renewed demand in 2014. New passenger car registrations in the European Union increased significantly during the recovery from the global economic crisis. However, recent years have seen only a slight increase. Moreover, the number of new passenger car registrations (and

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