Europe car sales plunge 22%, punctuating worst year in decades

Europe’s car sales slid during December for a sixth month of declines in a row, showing the extent of the uphill battle automakers are facing in the chip supply crisis.
 
Passenger car registrations dropped 22% last month to 950,218 vehicles, the European Automobile Manufacturers’ Association said Tuesday. New-car sales fell 1.5% last year, when automakers had their worst-ever showing since the association started tracking the market in the early 1990s. 
 
After predicting for months that the dearth of chips disrupting the global industry would ease, automakers’ expectations have deteriorated. Sourcing enough semiconductors will remain arduous this year, and the pandemic continues to weigh on consumer confidence. Renault SA last week said the shortage, which cost the carmaker 500,000 vehicles in lost production last year, will peak during the first six month and then slowly improve as more capacity is added.
 
“Car sales in 2022 will prove just as challenging as in 2021,” said Peter Fuss, a partner with EY’s automotive team. “We still have the pandemic worldwide, as well as the wave of omicron in Europe, which continues to considerably restrict consumer behavior.”