Berlin – German car sales took another hit in May, official figures showed Wednesday, as Russia’s invasion of Ukraine and tight supply chains added to the industry’s woes.
New registrations in Europe’s biggest economy fell 10.2% year-on-year to just over 207,000 cars, the Federal Transport Authority (KBA) said in a statement.
This came after the same indicator fell 21.5% in April and 17.5% in March.
“The market and production continue to be constrained by the lack of primary and intermediate products, high raw material prices and general uncertainty due to the continuing war in Ukraine,” the association said. VDA automotive industry in a statement.
EY sector analyst Peter Fuss said the auto industry was “stuck in its worst post-war production slump”.
Throughout 2021, automakers have faced persistent supply issues, which have hampered production and seen sales plummet. Those problems have worsened in recent months with China’s worst Covid-19 outbreak in two years.
As crucial components from Ukraine run out and Western sanctions on Moscow add further strain to already strained supply chains, the outlook for the flagship industry has darkened further.
The German market registered 1.0 million new vehicles in the first five months of the year, around 9% less than in the same period of 2021 and a decrease of 33% compared to 2019 before the pandemic.
However, domestic production showed a significant rebound, rising 25% year-on-year. Compared to 2019, however, production in the first five months of the year was 34% lower than before the crisis.
Electric vehicles were an exception to the bleak reports, with sales up 8.9% in May to account for 14.1% of new registrations, as petrol and diesel vehicles saw sharp declines in sales.