In Money Matters

David Stevenson

Car sales in Europe fell 23 percent: shortage of chips, not the low demand is to blame

Car sales in Europe fell 23 percent: shortage of chips, not the low demand is to blame

The number of new cars sold in the European Union fell by more than 23 percent in September compared to the same month in 2020. It came to a historically low point.

The biggest problem for car manufacturers is the continuing shortage of chips, writes the European automobile industry association ACEA. Last month, 718,598 cars were registered within the EU. According to the European car industry, there has not been so few cars sold in September since 1995.

Across Europe, 2021 is not a worse year than 2020. After all, it started promising for car manufacturers, with significantly higher sales figures than in the first months of 2020 disrupted by COVID. However, the chip shortage has clearly put a big spanner in the works. Over the first nine months, car sales are still up to 6 percent year-on-year. Until September, 7,526,613 new cars were sold in the EU.

Volkswagen is to date the best-selling brand in Europe this year. It sold 874.556 cars. Renault is on the second place with 539.803 cars. Peugeot is in third place, with 476.571 of the new car.

Not everywhere have more cars sold this year than last year. Germany, the largest car market in the European Union, has also seen fewer cars sold since the turn of the year compared to the same period in 2020.