Auto sales in Europe jumped the most since May 2021 as supply of key components including semiconductors continues to improve.
(Bloomberg) — Auto sales in Europe jumped the most since May 2021 as supply of key components including semiconductors continues to improve.
New-car registrations jumped 26% in March to 1.42 million, the European Automobile Manufacturers’ Association said Wednesday, extending the industry’s growth streak to eight consecutive months. Carmakers are benefiting from orders accumulated during the worst of their supply crises and a weak year-ago showing.
While parts shortages are easing, automakers are now contending with elevated inflation rates and slowing economies — factors expected to weigh on sales as the industry attempts a complicated shift to electric vehicles.
“An easing in supply constraints has strengthened the pace of deliveries to customers,” LMC Automotive said in a report this month. “Downside risks remain, with countries experiencing recessionary conditions that will be impacting underlying demand.”
Last month’s gains were especially pronounced in Spain and Italy, where sales expanded 66% and 41%, respectively. In Germany, the region’s largest market, registrations increased 17%. Last year’s March sales were held back by the war in Ukraine, which disrupted supply chains and fueled raw-material inflation.
Read More: Bloomberg Intelligence on Europe’s New-Car Sales
Volkswagen AG and Renault SA led gains among major European automakers with respective increases of 35% and 27%. Sales of fully electric cars surged 43%, lifting their market share to 15.5%.
Volkswagen’s namesake brand this week unveiled the ID.7, its first fully electric sedan, to compete with models from Stellantis NV and Tesla Inc. Luxury-car maker Mercedes-Benz AG plans to double its EV sales globally this year, Chief Executive Officer Ola Källenius told Bloomberg Television on Tuesday.
The share of EVs “is likely to grow this year as more models become available and supply-chain issues ease,” Bloomberg Intelligence analysts Gillian Davis and Michael Dean said in a note Tuesday.
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