Last month, the auto market plummeted 28% from 2 years ago. Will we be able to avoid a market collapse?

The sales and registrations data for July 2021 have been released and the results are truly worrying.

110,000 cars were registered in July with a pre-crisis drop of 28%. We are therefore recording the lowest level of the year, for the first time in decline even in 2020.

In fact, last year in the month of July 136,000 half of them had registered and the budget law that favored incentives was not yet present. As many as 153,000 cars had been sold in July 2019.

This data is truly worrying and it is hoped that the approval in Parliament of the new loans for scrapping incentives can help an automotive market that is almost collapsing on itself.

Despite all the government has allocated some funding which according to many are not entirely sufficient to flesh out a market which, although it sees many innovations coming out in an important way, does not find an immediate response with the purchase of people.

According to what was declared by the President of UNRAE, the already widely awaited incentive provision is not adequate to support the replacement of as many polluting cars as possible with new cars until the end of the year.

In other words, the effort of the Government is appreciable but it is not sufficient to allow a renewal of the Italian car fleet. It is therefore assumed that in September the incentives with a problem linked to the automotive world have already ended.

We could then find ourselves in the situation again of having a market that has collapsed again and is down compared to past years.

Having an automotive market that is struggling to take off has important repercussions not only for the general economy, but also for the automotive and mobility world as a whole.

If automakers fail to sell their cars they will have to reconsider all programming and debut plans for new models. In fact, the current cars also serve to reinforce the Research and Development phase for the world of sustainable mobility. It is therefore not very good that the world is going slowly, which implies having a world destined not to make the leap in quality as soon as possible with regard to zero-emission cars.

Car manufacturers are currently developing new cars and planning sustainable revolutions in the years to come. However, if the Automotive market fails to keep up with this structure, then the situation could be quite worrying.

We will see already in the month of August if the Automotive market will recover and will allow car manufacturers to replenish their coffers to continue the definition of future models, more and more technological.