Passenger car registrations in the EU continue to fall as the industry hit its lowest sales number for the month of June since 1996, the European Automobile Manufacturers Association (ACEA) said in its report monthly.
Only 886,510 units were registered, marking the 12th straight decline in year-over-year sales. New car registrations in the first half of 2022 decreased by 14% compared to 2021.
The June decline was felt in virtually all EU markets. Germany saw a steep decline of 18%, while other major markets such as France and Italy fell 14.2% and 15% respectively.
The figures also show that Volkswagen AG is the worst off among the major automakers. Registrations for the German car giant fell 24% from a year ago.
Semiconductor shortages have been one of many major impediments to auto production during the pandemic. The industry still has to overcome supply constraints, according to LMC Automotive, a consultancy. Rising material and energy costs have further increased vehicle prices and pressure on the industry.
Some manufacturers are changing their strategy to make the most of this delicate situation, focusing on high-end cars to sell less but with higher margins. Volkswagen increased its profits in 2021 by 75% to more than 15 billion euros, while sales fell by 600,000 units.