Sales on new passenger cars and LCVs in September 2021 declined 22.6%, according to the Association of European Businesses (AEB). In total, automotive salons and dealers have sold 119,4 000 cars, which is 34,9 vehicles less than in 2020 September.
According to AEB head Tomas Schterzel, “negative trend is going on” (in August the sales dropped 17%), although the totals for the first nine months of 2021 are showing 15.1% growth versus the same period in 2020. The shortage of vehicles on the market is connected to decreased production and the deficit of semiconductors. The energy crisis in China and UK, growing prices of raw materials and other problems will support negative trend in the market during the near term.
PSR Analysis: The problem here is not only in components deficit, but primarily in the car prices going up and the consumer’s incomes going down. So, the negative trend will develop further. PSR
Maxim Sakov is Market Consultant – Russia Operations, for Power Systems Research
