The sales volume for a month of March is the lowest since the start of the statistical series in 1990, except for the exceptional case of 2020.
Difficult to manufacture, new cars saw their March sales plummet in the European Union, victims of semiconductor shortages and the war in Ukraine, the European Manufacturers Association (ACEA) said Wednesday.
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In total, 844,187 vehicles were sold in March 2022, a decrease of 20.5% compared to March 2021 and almost a third less than in 2019. This is the lowest sales volume in a month of March since the start of the statistical series in 1990. with the exception of the exceptional case of 2020, which had paralyzed the economy at the start of the Covid-19 pandemic. The closure of Ukrainian factories has led to shortages of electronic components and supply problems that have plagued the auto industry since spring 2021. In particular, Ukraine is the main European supplier of wire harnesses, parts described as the “the nervous system” cars.
Double-digit declines for major markets
Due to a lack of parts, several factories across Europe have been shut down. Volkswagen had to temporarily stop production in several German locations, including part of the historic factory in Wolfsburg and Zwickau, the production center for electric cars. The Renault factory in Douai, which produces the electric Mégane, has been shut down for 11 days. †Logistics problems, exacerbated by the Russian invasion of Ukraine, negatively impacted car productionnoted ACEA. Major markets saw double-digit declines, such as Germany (-17.5%), France (-19.5%), Italy (-29.7%), Spain (-30.2%), Poland (-17.4 %), Belgium (-17.7%) or Sweden (-39.5%). Close to the EU, the British market also fell by 14.3%.
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As for the automotive groups, the European number 1 Volkswagen saw its sales fall by 24.3%. Only the luxury brands (Porsche, Bentley, Lamborghini and Bugatti) are resisting the crisis. Number 2, the Stellantis group, born of the merger of PSA and Fiat-Chrysler, saw its market share fall to 20% with a sharp drop in sales (-32.9%) and poor scores for Peugeot, Fiats and Jeeps. After months of sharp decline, Renault held up better in March (-14.1%), driven by Dacia’s success. Only Kia continues its momentum (+10.1%), while Hyundai is down 8.2%. Toyota fell 12.2%, BMW-Mini 20.5%, Mercedes-Smart 13.6%
The Federation of German Manufacturers (VDA) cut its production forecast for 2022 sharply in early April, counting on 3.3 million units produced in Europe’s largest economy, up 7% from +13% previously expected. Now a “broadening sanctions against Russia and production stoppages in China, due to the zero-Covid strategy adopted by Beijing, may necessitate further forecast adjustments in the coming monthsHildegard Müller, chairman of the VDA, had stated.
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