Car sales in the European Union dropped to a new low in 2021, with the COVID-19 pandemic and the shortage of computer chips severely impacting the auto sector in the region. Figures from the European Automobile Manufacturers Association (ACEA) showed a 2.4 percent decrease in registrations of new passenger cars in the EU last year, with just 9.7 million vehicles sold.
That is the worst performance by the auto industry in Europe since 1990, the year statistics for new registrations were first compiled. It has been a rough stretch for carmakers in Europe, who also suffered massive losses in 2020. Car sales fell nearly 24 percent due to COVID-19 restrictions that year, with the EU having 3.3 million fewer car registrations compared to 2019.
ACEA blamed the lack of semiconductors as the main reason the auto industry struggled in Europe, with companies having difficulty acquiring the needed computer chips used in car systems in both traditional and electric vehicles. That caused car production to drop, especially in the second half of 2021. Manufacturers even had to idle factories last year due to the supply chain shortage.
Poor sales in Germany dragged down the overall figure in the EU, with only 2.6 million vehicles sold last year, a massive 10.1 percent drop compared to its 2020 numbers. Germany is the EU's largest car market, accounting for a quarter of the region's total sales.
What made the numbers in Europe even more disappointing for car companies was that other major markets were able to increase their sales in 2021 despite the shortage of computer chips. China's auto market increased by 4.4 percent, while the US market grew by 3.7 percent.
Related Article: Tesla vs Hacker: 19-Year-Old Makes Hacking Claim; Takes Control of 25 Teslas in 13 Countries
Europe's top three car manufacturers all saw a decrease in sales in the region, hampering the industry's growth. Volkswagen saw a 4.8 percent drop in sales last year with just 1.4 million units sold. That caused the company's market share to drop to just 25.1 percent.
Stellantis, the new company formed from the merger of France's Peugeot-Citroen and Italy's Fiat Group, saw its sales drop 2.1 percent in 2021. They still managed to increase the company's market share to 21.9 percent. On the other hand, Renault suffered a huge 10 percent drop in sales, with the French manufacturer seeing its market share dip to 10.6 percent.
Daimler, the owner of the Smart and Mercedes brands, also had a rough year as the company witnessed a 12.4 percent drop in sales. BMW managed to avoid the fate of its rivals, with the German manufacturer seeing a 1.5 percent increase in the number of registrations.
The start of 2022 promises to be another difficult one for automakers, with Alexandre Marian of the AlixPartners consultancy group telling AFP that chips are still in short supply during this period.
READ MORE ON AWN:
Elvis Presley Cadillac up for Auction; Bidding Starts for 1975 Cadillac Fleetwood Brougham
Maserati To Race in Formula E for 2023 Season; Provides Major Boost to All-electric Series
See Now: OnePlus 6: How Different Will It Be From OnePlus 5?
