Italy July 2020: Market fall slows to -11.2%, VW above 10% share, Golf (+73.9%) at highest in 2.5 years

The VW Golf is inside the Italian Top 5 for the first time since February 2018.

New car sales in Italy continue to recover from a catastrophic Covid-19 episode with July sales down -11.2% to 137.086 units, and this before the implementation of the Legge Relancio destined to prop the industry back up. This month the market was sustained by aggressive promotions from most carmakers that have managed to attract customers back into dealerships before the August summer break. Private sales (-8.5%) once again outpace the market at 86.636 and an impressive 63.2% share vs. 61.4% a year ago, down -37.7% YTD to 439.120 and 60.5% share vs. 56.8% over the same period in 2019. As European borders reopen and tourism restarts, fleet sales are very dynamic in July, up 8.8% to 30.399 and 22.2% share vs. 18.1% in July 2019 whereas they are off -45.4% so far in 2020 to 179.699 and 24.8% vs. 26.5%. In particular, short-term rental sales shoot up 111.7% to 6.193 while leases edge down -2.7% to 20.960. In contrast, company sales are still in the ditch at -36.7% to just 20.051 units and 14.6% share vs. 20.5% a year ago, down -48.6% YTD to 106.820 and 14.7% share vs. 16.7%. To this end, the government aids are aiming at reducing the VAT on company purchases to reenergise the sector. We are adjusting our 2020 Italy forecast from 1.33 million units (-30%) to 1.37m (-29%), which would still be the the lowest annual tally in 42 years: since 1978 (1.19m).

The Opel Corsa is up 72.4% year-on-year in July.

Petrol sales are off -23.4% to 52.850 and 38.6% share vs. 44.7% a year ago and down -43.4% to 305.478 and 42.1% vs. 43.4%. Diesel (-12%) holds much better this month at 50.652 and 36.9% vs. 37.3% but sinks -50.7% YTD to 257.164 and 35.4% vs. 42% over the same period in 2019. GPL tumbles down -37.3% to 8.830 for July and -46.7% to 46.105 so far this year. In contrast, HEV shoots up 108% to 17.447 and 12.7% share vs. 5.4% in July 2019 and up 25.1% YTD to 80.191 and 11.1% share vs. 5.2%. PHEV is up an even more spectacular 438.3% to 2.094 and up 173.4% to 7.896 YTD while BEV soars 70.5% to 1.608 in July and up 95.4% to 11.563 so far this year. Electrified vehicles (HEV+PHEV+BEV) surge 117.6% year-on-year in July to 21.149 and 15.4% share vs. 6.35 a year ago and up 36.7% YTD to 99.650 and 13.7% share vs. 5.9% over the same period in 2019.

Ford Focus sales soar 71.4% over July 2019. Picture quattroruote.it

In the brands ranking, Fiat (-2.7%) resists much better than the market but still returns a weak share at 14.3% whereas Volkswagen (+0.7%) edges up to become the only Top 5 carmaker in positive and hits 10.6% share, two points above its June level and only its 2nd time above 10% in at least the past decade alongside last October (10.8%). Ford (-2.6%) also resists well and climbs back onto the podium but Renault (-21%) and Peugeot (-18%) snuggle just below. Mercedes (+12.9%) scores the largest gain in the Top 10 while Audi (+2.6%) steps up to #6 overall just as Toyota (-9.3%) limits its fall to just below the market rate and Opel (-31%) and Jeep (-17.4%) skid down. Further down, premium marques are on a roll, with DS (+61.1%), BMW (+38.6%), Lexus (+31.4%), Volvo (+30.4%), Ferrari (+27.7%), Porsche (+25.5%) and Mini (+24.8%) posting some of the most impressive year-on-year gains in the entire market, Mahindra (+46%) and Great Wall (+35.9%) being the odd ones out.

The new generation boosts Skoda Octavia volumes up 48.2%.

Model-wise, the Fiat Panda (-8.5%) is unshakeable at #1, now helped by 2.109 units of a new mild hybrid variant. The Lancia Ypsilon (-15.7%) is back up to the 2nd spot it holds year-to-date while the Fiat 500X (+9.6%) is up 3 ranks to #3, its highest ranking at home since October 2018 (#2) and the Jeep Renegade (-25.6%) up 8 spots to #4 despite a steep fall. The biggest gainer in the Top 10 is a VW Golf (+73.9%) revived by an 8th generation finally available in Italian showrooms, reaching its highest ranking in Italy since February 2018 at #5. The Golf however remains stuck at #22 YTD for now, with the T-Roc (-2.8%) still holding the title of best-selling VW in Italy at #7 so far this year. The VW Polo (+22.9%) is back inside the Top 10 at #8 and the Fiat 500 (+45.2%) continues its seesaw career at #10. The Ford Puma is up to #15 and remains the only recent launch in the Top 50 while the Opel Corsa (+72.4%), Ford Focus (+71.4%), Hyundai Kona (+60.5%), Skoda Octavia (+48.2%), BMW X1 (+38%), Opel Crossland X (+37.8%), Hyundai i10 (+24.4%), Audi Q3 (+21.7%), Fiat 500L (+16.8%) and Ford Kuga (+15.5%) secure the largest gains in the remainder of the Top 50.

Previous month: Italy June 2020: Electrified vehicles (+77.9%), private sales (-7.7%) reduce market decline to -23.3%

One year ago: Italy July 2019: Fiat sinks to lowest-ever share for 5th time in past 12 months at 13.1%, Dacia up 53.6%, Sandero at highest ever #4

Full July 2020 Top 45All-brands and Top 50 models below.