Car sales in Europe hit record low due to global microchip shortage

Paying Social Media Jobs
Social sharing

Car sales in Europe hit a record low in October due to microchip shortages, the European Automobile Manufacturers’ Association said in a statement on Thursday.

New passenger car registrations in the European Union dropped by 30% in October, the group said.

“With 665,001 units sold across the region, this was the weakest result in volume terms for a month of October since records began,” the statement read.

Europe’s biggest car markets suffered “double-digit losses,” including -35.7% in Italy, -34.9% in Germany, -30.7% in France and -20.5% in Spain.

Meanwhile, demand has held up in most of these markets, except in Germany.

October marks the fourth consecutive month of car sales decline this year after a post-pandemic bounce.

“Despite the recent drop in sales due to the ongoing impact of the semiconductor supply crisis, substantial gains earlier in the year helped to keep cumulative volumes in positive territory,” EAMA said.

A recent shortage of microchips has severely disrupted the supply chain of the automotive industry, forcing it to slash production.

The semiconductors are used for driver assistance systems and computer management of engines.

The causes behind the shortage are complex, but experts say pandemic disruptions have exacerbated them.

The chip shortage began last year after factories were shuttered due to COVID-19. When production lines restarted, there was a higher demand for technology appliances, putting pressure on supplies of semiconductors.

Source

READ ALSO  March commemorates massacre of Algerians in Paris
About 9News Nigeria 9325 Articles
9News Nigeria is Nigeria's favourite news source.For Authentic, Unbiased News on Politics, Business, Sports, Technology, Entertainment and Lifestyles, Health, Nollywood, Crime and Investigations, Family and Relationships, Inspirations .. and much more.For Latest News from Africa and around the world, 9News Nigeria is your best source. WhatsApp +2348115805632 Email: info@9newsng.com Facebook: www.facebook.com/9NewsNG | Twitter/Instagram: @9newsng

Be the first to comment

Leave your comment

Paying Social Media Jobs
Paying Social Media Jobs
Paying Social Media Jobs