Europe's carmakers see demand slowing as inflation bites

Surging costs and interest rate hikes are impacting new car purchases

Carmakers long defied economic headwinds thanks to robust demand for their priciest models. Picture: Andreas Gebert/Bloomberg

Europe’s inflation crisis is beginning to catch up with automakers.

Stellantis, owner of the Fiat, Opel, Peugeot, Citroën and Alfa Romeo brands, said consumers in Europe were slightly dialling back car purchases, joining Germany’s BMW in warning the region is on the backfoot due to surging costs for anything from energy to lending.