Why are EU car sales still plummeting in April?

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EU Car Sales Declined Significantly in April Due to Persistent Supply Chain Disruptions

European Union car sales experienced a substantial downturn in April, with new passenger car registrations falling by 20.6 per cent compared to the same period in the previous year. This marks the weakest April performance since records began, excluding the pandemic-affected year of 2020, with a total of 684,506 units sold across EU countries. The primary driver behind this decline is the ongoing strain on production caused by critical supply chain issues.
Persistent Shortage of Computer Chips Hampers Production

Automakers have been grappling with a severe lack of essential computer chips for over a year, a situation that continues to impede vehicle manufacturing. This persistent shortage directly impacts the ability of manufacturers to produce vehicles at pre-pandemic levels, leading to reduced inventory and, consequently, lower sales figures throughout April.
Additional Supply Chain Issues Affecting Manufacturers

Beyond the well-documented chip shortage, the automotive industry is also facing challenges with the supply of other crucial components. Specifically, certain parts imported from Ukraine have become a source of disruption for manufacturers, further exacerbating the production constraints experienced in April.
Major European Markets Show Significant Sales Drops

The impact of these supply chain woes was evident across all major European markets. Italy recorded the steepest decline, with sales plummeting by a third. France and Germany both experienced drops of just over a fifth, while Spain saw a decrease of 12.1 per cent in April's new passenger car registrations.
Overall Sales Performance Shows Continued Weakness

The downward trend observed in April is consistent with the broader performance of the EU automotive market for the year. Over the first four months of 2022, total sales were down by 14.4 per cent compared to the same period in 2021. Leading manufacturers like Volkswagen saw an 18 per cent fall in sales during this period, while Stellantis registered a significant 26 per cent drop. In contrast, South Korea's Hyundai Group bucked the trend, achieving a 10.8 per cent increase in sales in April.

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Why are EU car sales still plummeting in April?

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