European sales fall a fifth

Car registrations across 26 European markets fell 18% in August, making the 713,714 units sold the lowest recorded volume in August since 2014.

However, year-to-date volume remains higher than last year, with 8,095,419 registered units compared with 7,192,839 registered between January and August in 2020.

Felipe Munoz, global analyst at JATO Dynamics, said: “The chip shortage has been a major setback for OEMs still grappling with the effects of the pandemic. Production issues and delays in the delivery of new cars have been damaging to sales, and the lack of availability at dealerships is forcing many consumers to either look for used cars or simply delay their purchase. In usual circumstances, consumers may expect to wait lots of months for a new Ferrari, but they are now experiencing the same delay for regular models.”

Despite these challenges, the performance of electric vehicles and plug-in hybrid cars continues to grow. A sharp uptick in demand last month saw these vehicles post their second highest ever monthly market share at 21%, outselling diesel. The 151,737 units registered last month marks a year-on-year increase of 61% and takes total volume since January to 1.32 million units.

Munoz continued: “Although deals and incentives have played a significant part in boosting demand, we have seen a fundamental shift in buying habits as more appealing models have entered the market and consumers have become aware of the benefits attached to EVs.”

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