Automakers recorded the fewest EU new vehicle registrations since 1996 in June as persistent supply chain problems and record inflation hit the industry.
In particular, sales of new cars in the EU and four other states recorded by the European Automobile Manufacturers Association fell 17% last month to 1.07 million.
Volkswagen was the biggest loser, seeing its registrations drop 24% from a year ago.
Although manufacturers such as VW, BMW AG and Mercedes Benz said last month that the semiconductor shortage was starting to ease, it still takes time to ramp up production, get the new cars into showrooms and enable dealers to fill the books. their orders.
At the same time, manufacturers are faced with the cost of raw materials and energy, which lead to an increase in vehicle prices.
Sales in major markets such as Germany and the United Kingdom are likely to return to growth rates this month, of course, compared to the same period a year ago, according to Bloomberg Intelligence.
However, although the industry has a chance to break its 12-month losing streak, it will be difficult to make up for production losses in the first half of the year.
Notably, industry forecaster LMC Automotive now estimates that passenger car deliveries in Western Europe will fall by 6.3% this year to 9.92 million. It is noted that in January the market research company predicted that sales would increase by almost 9%.
Source: Capital
I am Derek Black, an author of World Stock Market. I have a degree in creative writing and journalism from the University of Central Florida. I have a passion for writing and informing the public. I strive to be accurate and fair in my reporting, and to provide a voice for those who may not otherwise be heard.
