EU passenger car registrations plunged 22% in a single month The full-year performance bottomed out again in 2021

According to a report released by the European Automobile Manufacturers Association (ACEA) on Tuesday, passenger car registrations across the European Union fell for the sixth consecutive month in December, down 22.8 percent to 795,295 units.

Four major markets saw phenomenal declines, with Italy down 27.5 percent year-on-year, Spain down 18.7 percent and France down 15.1 percent. Germany, Europe's largest auto market, fell 26.9 percent, and the continent's largest economy contracted as much as 1 percent in GDP in the last quarter of 2021.

(Source: ACEA)

This led to a 2.4% decline in full-year new car sales in the EU to 9.7 million units, following its worst all-time performance in 2021. (The data began tracking in the early 1990s) The total number of EU car registrations in 2021 is around 3.3 million lower than in 2019 compared to before the COVID-19 outbreak.

AcEA noted that the main problem is on the supply side, with the shortage of semiconductors producing a serious negative impact, especially in the second half of 2021. Procuring enough semiconductors will remain a daunting task in 2022, and the COVID-19 pandemic continues to weigh on consumer confidence.

Peter Fuss, Senior Advisory Partner in EY's Automotive sector, said: "Car sales in 2022 will prove to be as challenging as 2021, as we continue to face the COVID-19 pandemic around the world and the Opickron wave in Europe, which will continue to limit consumer behaviour. ”

Renault last week predicted that the shortage that cost the company 500,000 vehicles last year would peak in the first half of the year and then slowly improve as more capacity increased. AcEA's table shows Renault sales fell 10.2 percent last year.

The table also shows that Full-year sales of volkswagen group fell by 4.8%, Daimler group by 12.4%, Stellantis by 2.1%, but BMW group by 1.5%.

With the supply of new and used cars limited, manufacturers will benefit from higher car prices. Last year, most automakers successfully shifted production to high-end cars with high profit margins to offset lower production.