Shares of European automakers slide after new-car sales slump in January

Shares of European automakers slide after new-car sales slump in January

European auto stocks suffered on Tuesday after new car sales fell 7.5% in January as the sector's woes continued.. , which reported its first annual loss in a decade last week, was the sharpest faller as the stock dropped 6%.. The French manufacturer's sales were down 16.3% in January compared with the previous year, according to data from the European Automobile Manufacturers Association (ACEA).. The EU passenger car market contracted 7.5% to 956,779 units last month, slowing from a 21.7% rise in December, due to weakening global economic conditions and Brexit uncertainty, the ACEA said.. Taxation changes by some EU countries pulled some sales forward to December 2019, which also explained the drop, it said.. sales slipped 10% at the start of 2020 after it also posted its worst annual performance in a decade last year.. The Mercedes-Benz owner's sales had held firm at 3.3 million in 2019 despite softening global demand as it maintained its position as world's best-selling premium car brand.. But the slow start to 2020 sent the stock 2.3% lower.. sales declined 0.4% as both stocks traded lower.. bucked the trend as new car registrations jumped 5.2% and 12.2% respectively..