Sales of new cars in the EU are falling for the sixth month in a row. But not in Ukraine
In December 2021, 795,295 new cars were registered in the European Union. This is 22.8% less than in the same month last year. The fall of the new car market in Europe has been going on for the sixth month in a row, according to the European Automobile Manufacturers Association (ACEA).
Most European Union markets fell, including four major ones: Italy (-27.5%), Germany (-26.9%), Spain (-18.7%) and France (-15.1%). The only countries in the European Union that saw an increase in new car sales were Bulgaria, Croatia, Latvia and Slovenia.
In total, in 2021, sales of new cars in the EU fell by 2.4% to 9.7 million units. Thus, the anti-record of sales of new cars in 2020 was broken. However, if then the reason for the record lows was the first wave of "lockdown" and the COVID-19 pandemic in the world, in 2021 the decline was due to a shortage of semiconductors in the automotive industry. Manufacturers have suffered from this problem over the past year, but the worst situation was in the second half of 2021. For comparison, in the "pre-crisis" 2019 sold 3.3 million new cars.
If we talk about the whole of 2021, of the four main markets of the European Union, only Germany recorded a decline (-10.1%). On the other hand, the highest growth is in Italy (+ 5.5%), followed by Spain (+ 1.0%) and France (+ 0.5%).
According to the analysis of the Automotive Market Research Institute, in December 2021 10,917 cars were registered in Ukraine, which is 7.2% more than in December 2020 and 22.2% more than in November 2021. For the whole of 2021, 107,770 new cars were registered in Ukraine, which is 21.4% more than in 2020.
Among the reasons for this growth, experts from the Automotive Market Research Institute name several reasons.
- The market of new cars in Ukraine has been at a minimum level since the 2014 crisis. The Ukrainian economy is recovering year after year, while Ukrainiansʼ purchasing power is growing.
- The annual result of 107,000 new cars, although a record for the last 8 years, is small compared to EU countries. For example, in neighboring Poland in 2021 sold four times more new cars.
- Most sales in Ukraine are used cars worth up to $ 10,000. Demand for them is much higher than for new ones.
The shortage of new cars in Ukraine has been avoided. Although waiting times in car dealerships have increased for certain models and brands, dealers have generally managed to meet the needs of customers in 2021.
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