EU car sales sink on chip shortage

European new car sales fell to their lowest level for a month of September since 1995 as a global shortage of semiconductors hit supply, industry data showed today.

The global auto industry has been severely affected by a lack of chips that are key components for vehicles, forcing several major brands to temporarily shut down production at factories.

European Union car sales had rebounded in September 2020 as countries emerged from pandemic lockdowns.

But new car registrations fell by 23.1 per cent to 718,598 in September 2021 compared to a year ago, according to the European Automobile Manufacturers’ Association, known as ACEA.

“This decrease in sales was largely caused by a lack of supply of vehicles due to the ongoing semiconductor shortage,” the ACEA said in a statement.

Sales sank by a quarter in Europe’s top economy and car powerhouse Germany, 32.7 per cent in Italy, 20.5 per cent in France and 15.7 per cent in Spain.

But over the first nine months of the year, car registrations rose 6.6 per cent across the EU to 7.5 million units compared to the same time in 2020.

“Significant gains earlier in the year helped to keep cumulative volumes in positive territory,” the association said.