Car sales are at the lowest level since 1995 amid the global manufacturing disruption

718,598 cars were registered in the EU last month. This is 23% less than a year ago and the lowest number in September since 1995, the European automobile industry association ACEA reports on Friday.

It was already the third month in a row when the number of car registrations in the EU fell compared to a year earlier. Between February and June, there were significantly more cars registered than in 2020, but since July sales have been on a downward trend.

The ACEA points to this reduction in the chip deficit that has been plaguing the automotive sector for several months. Since the onset of the coronavirus crisis, people have been buying new laptops or gaming computers more often. As a result, the demand for chips has increased so much that producers can no longer follow.

In recent years, the automotive industry has also increasingly used chips for on-board computers and navigation devices. This means that a lot of cars cannot be finished if there is a shortage of chips. Analysts and industry companies have already pointed out that the deficit could persist until 2023.

In Lithuania, car sales declined most by 57%, while Estonia performed best with an increase of 8%. For the full first half of this year the figures look better. Across the EU, sales increased by 6.6% between January and September. In the Netherlands, it declined slightly by 5% during that period.