Semiconductor shortage crashes car sales in EU

By Gokhan Ergocun

ISTANBUL (AA) - While the passenger car sales increased 6.6% in the EU during the first nine months of 2021, September saw the lowest level for this month since 1995 due to the semiconductor shortage, a sectoral group said on Friday.

Automobile registrations across the 27-member bloc totaled 7.5 million units in January-September, the European Automobile Manufacturers' Association (ACEA) said in a statement.

"Significant gains earlier in the year helped to keep cumulative volumes in positive territory," it said.

In September alone, the car sales continued to drop, down 23.1% to 718,598 units on a yearly basis, "marking the lowest number of registrations for a month of September since 1995."

The ACEA said the decline was stemmed from a lack of supply of vehicles due to the semiconductor shortage globally.

"Last month’s weak performance was replicated at a country level, with all major EU markets recording double-digit declines: Italy (-32.7%), Germany (-25.7%), France (-20.5%), and Spain (-15.7%)," it added.

All major EU markets posted positive results in the nine-month period excluding Germany, of which passenger car sales decreased by 1.2%.

Italy posted the highest increase (20.6%), followed by Spain (8.8%), and France (8%).

Among manufacturer groups' EU sales, the largest increases were posted by Hyundai Group – the owner of Kia and Hyundai brands – and Toyota Group – Toyota and Lexus, growing 22.6% and 19.8%, respectively.

Renault Group (Renault, Dacia, Alpine, Lada), Daimler (Mercedes, Smart), Ford, Nissan, Mitsubishi, and Honda posted negative results in the January-September period.

The EU is the main automotive export market for Turkey, where top international automakers – Ford, Hyundai, Mercedes, Renault, and Toyota – are operating.