EU automobile sales to rebound in 2022: industry

Automobile sales are likely to rebound by 7.9 percent in the European Union in 2022, but still remain far below the 2019 level, industry figures showed Tuesday.

The European Automobile Manufacturers’ Association (ACEA) said it “now forecasts that passenger car registrations in the EU will return to growth this year, rising by 7.9 percent to reach 10.5 million units”.

That follows 9.7 million units sold in 2021.

The ACEA based its forecast on expectations semiconductor chip supplies will stabilise this year after shortages severely hurt the industry.

While the EU launches a plan Tuesday to raise tens of billions of euros to boost semiconductor production in Europe, the ACEA urged the bloc to reduce its dependence on non-European suppliers to avoid damage to the industry in the future.

After a sharp drop in sales in 2020 with the coronavirus pandemic, the US and EU automarkets were paralysed last year by semiconductor shortages, especially those made in Asia.

However, ACEA said, the share of rechargeable hybrid and electric vehicles has continued to increase: they now account for one out of every five cars sold in the EU.

“However, we cannot forget that this is still quite a fragile market,” according to ACEA President and CEO of BMW Group, Oliver Zipse.

He added the market “is highly reliant on support measures such as purchase incentives and, above all, the widespread availability of charging infrastructure.”

Yet the ACEA said the “pace of infrastructure roll-out is lagging way behind consumer demand for electrically-chargeable cars.”

While the European Commission has proposed an end to petrol and diesel powered cars for 2035, the European Parliament and national governments are discussing continental standards for recharging points.

The ACEA is urging the parliament and the national governments to bolster the European Commission proposal to ensure an adequate recharging network is set up.

© 2022 AFP