Europe sales slumped in March amid Ukraine-related parts shortages – Automotive News Europe

April 21, 2022 by No Comments

Automakers have been forced to reduce production because of a shortages of components, especially wire harnesses, produced in Ukraine.

Car companies have also started to again walk back expectations of improvements in semiconductor availability with bottlenecks now seen reaching well into next year.

The month capped a disappointing start to the year, contributing to an 11 percent drop for the first quarter after carmakers had banked on improving conditions over 2021. 

“Parts shortages and production halts related to the Ukraine war are set to limit auto supply and delay an expected sales recovery,” Bloomberg Intelligence analyst Michael Dean wrote in a note. 

While demand continues to outstrip supply, record inflation in the euro region may begin to affect buying decisions, according to forecaster LMC Automotive.

The forecaster cut its estimate for growth in Western Europe to just 0.4 percent, expecting deliveries will total just 10.63 million, well below the 14 million mark that the industry was clearing pre-pandemic.

All the major European Union markets reported a decline in registrations in March ranging from 20 percent in France and 18 percent in Germany to 30 percent in Italy and Spain.

Reuters and Bloomberg contributed to this report

Source: https://europe.autonews.com/sales-market/europe-sales-slumped-march-amid-ukraine-related-parts-shortages

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