According to the latest data from the European Automobile Manufacturers Association (ACEA), new vehicle registrations in the European Union declined further in February, indicating ongoing logistics problems and a shortage of key components in the automotive industry.
New car registrations in February fell 6.7% year-on-year, with manufacturers suffering from supply chain disruptions, resulting in sales of only 719,465 units. This is the weakest result in February’s volume since the record began to be retained. March 17 ACEA report Said.
In addition, it has decreased for 8 consecutive months, which is a sharp decrease from January when new car registration decreased by 6%. During the six months from July to December, new car registrations fell by double digits each month, with the largest decline in October, a 30.3% decline.
Major markets such as France and Italy recorded losses, with new registrations down 13% and 22.6%, respectively. Other major markets such as Germany and Spain showed modest growth of 3.2% and 6.6%. Portugal recorded the highest growth, with new registrations surged 39.2%, while Finland recorded the largest decline of 22.9%.
“From January to February 2022, the total number of new cars registered in the European Union decreased by 6.4% compared to the same period last year,” the report said. “Again, looking at the four largest markets, Italy showed the largest decline (-21.1%), followed by France (-15.7%), while Germany (+ 5.6%) and Spain (+ 4.2%). %) Both markets continued to expand. “
Brands such as Volkswagen Group, Stellantis, Renault, BMW, Ford, Volvo, Nissan and Jaguar Land Rover have seen fewer new passenger registrations. In contrast, brand registrations such as Hyundai, Toyota, Mercedes-Benz, Mazda, Mitsubishi and Honda recorded positive growth.
New car registrations in the EU, European Free Trade Association (EFTA), and the UK fell 5.4% to 804,028 units.
In the future, European carmakers may find it difficult to maintain supply due to the war between Russia and Ukraine. Kyiv is an important manufacturer of wire harnesses. If the supply of wire harnesses is compromised, vehicle production will be interrupted.
Some car makers are neglecting production. Wells Fargo car analysts predict that a shortage of wire harnesses could reduce European car production by 10-15% in the first half of this year.
The Russian-Ukraine War also spotlights the EU’s reliance on supply from other countries. “Today, Europe has the problem of making more sophisticated products without waiting for supply from outside the union. This is a problem, and this is just another example,” said the Slovak Automakers Association. Executive Director Pavol Prepiak told the European media network. Euractiv..
“Europe must be able to become independent in this regard. Suppliers must be relocated to a more stable country or the union itself.”
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Naveen Athrappully is a news reporter on business and global events in The Epoch Times.