Saturday, May 28th, 2022

The auto sector in Europe still in crisis: black October for registrations

The automotive sector has not yet recovered in Europe and sets new negative records in October in terms of registrations. The chip shortage has grown heavy: has the peak been reached?

The car sector in Europe continues to suffer and Acea data on registrations in October revealed a bad month for sales of new vehicles.

Manufacturers are now hoping that the protracted shortage of semiconductors has peaked and is about to recede.

Below is the updated October data on new vehicle sales in Europe, with a focus on major car manufacturers such as Volkswagen and Stellaris.

The auto sector in Europe does not take off: sales at -29% in October

New car registrations fell by 29% during October to 798,693 vehicles.

These are the data updated by the European Association of Automobile Manufacturers. The numbers have been clear: year-to-date sales are up by only 2.7%.

For the fourth consecutive month, registrations were negative, a clear sign that the chip shortage still impacted heavily in the fall. Some factories, short of semiconductors, have stopped the plants.

New Covid waves hit manufacturing at chip packaging and testing facilities in Southeast Asia during the third quarter, unexpectedly exacerbating component supply. Port closures have further stressed shipments.

Although automakers have anticipated some improvement, the situation is likely to remain uncertain throughout the year.

Not surprisingly, the European Union could approve potential state aid to finance new semiconductor plants in the region, amid the global chip shortage that is hindering its recovery from the pandemic. This is the latest news from the words of the EU manager to the competition on Thursday 18 November.

All European markets, except Ireland and Cyprus, experienced a decline in registrations in October. Considering the period since the beginning of the year, Germany, for example, has shown a -5% of sales compared to the period 2020.

In October, Germany, Italy, and France showed deep thumps in registrations compared to 2020, with drops of 34.9%, 35.7%, and 30.7% respectively.

In Spain and the United Kingdom, new sales were negative for 20.5% and 24.6%.

Also complicit in the return of the pandemic, sharply rising prices, the energy crisis, and the loss of consumer confidence, October 2021 is the worst ever in Acea surveys.

Volkswagen and Stellantis in sharp decline

Volkswagen, Europe’s largest carmaker, was hit hardest among major manufacturers with deliveries falling 42% in October compared to a year ago.

Sales of Stellantis NV, the second-largest producer of brands like Fiat and Peugeot, fell by 32%. It should be noted, however, that the group born from the FCA-PSA merger recorded + 3.2% in the January-October period.

The registrations of the Renault Group also fell by 31.5%, which collapsed by 10.8% since the beginning of the year as also insurance.

Hyundai, on the other hand, reversed the trend, with net sales up 6.7% in October.

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