Impact of Semiconductor Shortage: European Car Sales Down 18% in August

Falling More Than Early COVID-19 Pandemic
"Worst Since 2013 Eurozone Economic Crisis"

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Suhwan] Due to the global semiconductor supply shortage, the sales volume of automobiles within Europe has fallen even below the levels seen during the early stages of the COVID-19 pandemic last year.

On the 16th, Bloomberg News cited data from the European Automobile Manufacturers Association (ACEA), reporting that car sales within Europe in August dropped by 18% compared to the same period last year.

This follows a sharp 24% decline in July compared to the previous year, marking two consecutive months of sales figures below last year's levels.

This steep decline in sales is analyzed to be due to production disruptions caused by semiconductor shortages within the European automotive manufacturing industry.

Earlier, major European car companies such as Volkswagen, Daimler, and BMW stated that production issues are expected to continue until next year.

Market research firm LMC Automotive released a report last week stating, "The biggest challenge currently facing the automotive industry is the semiconductor shortage," and added, "Despite demand recovery and economic rebound, the automotive industry's recovery is being hindered by semiconductor problems."

According to Bloomberg News, car sales in Europe during July and August were the worst since the Eurozone economic crisis that swept across Europe in 2013.

The sharp decline in sales occurred across Europe, including Germany, France, the United Kingdom, Spain, and Italy, all experiencing double-digit drops.

Specifically, Spain saw the most severe impact with a 29% drop in sales, while Italy's sales fell by 27%.

By manufacturer, Daimler recorded the largest sales decline among major European car companies with a 38% drop. Volkswagen Group sales fell by 14%, while Stellantis and Renault dropped by 29% and 23%, respectively. BMW sales decreased by 18%.

This content was produced with the assistance of AI translation services.