Demand for new passenger cars in the EU shrinks by 23.1%
EditorialRoom 27th October 2021

Last month, European Union passenger car registrations continued their decline. Demand in the region shrank by 23.1% to 718,598 units, marking the lowest number of registrations for a month of September since 1995, according to the European Automobile Manufacturers’ Association, or ACEA which unites Europe’s 15 major car, truck, van and bus makers.
This decrease in sales was largely caused by a lack of supply of vehicles due to the ongoing semiconductor shortage. For months now, a global chip shortage is disrupting automotive supply chains and production processes, with a major impact on European automakers.
Last month’s weak performance was replicated at a country level, with all major EU markets recording double-digit declines: Italy (-32.7%), Germany (-25.7%), France (-20.5%) and Spain (-15.7%).
Over the first three quarters of 2021, car registrations across the EU climbed 6.6% to reach 7.5 million units, as significant gains earlier in the year helped to keep cumulative volumes in positive territory. Looking at the largest EU markets, Italy posted the highest increase so far (+20.6%), followed by Spain (+8.8%) and France (+8.0%). By contrast, the German car market slipped back into negative territory (-1.2%).
According to ACEA, 243 million cars are on the road in the EU today, their average age is 11.5 years. The budgets of the EU member states receive €398.4 billion per year from the sale and use of passenger cars.
Last year, 9.9 million passenger cars were registered in the bloc, a decrease of 23.7% compared to the previous year. Meanwhile, 5,189,538 European cars were exported worldwide in 2020, worth over €121 billion. 24.5% of new cars sold in the EU are alternatively-powered vehicles. Average new car emissions are108.2g CO2/km, a 22.4% decrease since 2010.
The European Automobile Manufacturers’ Association was founded in 1991 under the French name l’Association des Constructeurs Européens d’Automobiles, which explains the widely used and recognised acronym still in use today: ACEA.
Three decades ago, its founding members were: BMW, DAF, Daimler-Benz, FIAT, Ford, General Motors Europe, MAN, Porsche, Renault, Rolls Royce, Rover, Saab-Scania, Volkswagen, Volvo Car and AB Volvo.
In more recent years, ACEA also opened its doors to non-European manufacturers with significant production and research facilities in the EU.