European new car sales declined 21 percent in March

New passenger car registrations in the European Union (EU) in March dropped by 21 percent year-on-year and were 34 percent less than the pre-pandemic levels, said a study released by consulting firm Ernst & Young (EY) on Wednesday.

Together with the ongoing global chip shortage, the Russia-Ukraine conflict, and the lack of important supplier parts have caused a significant impact on new car sales in Europe, according to EY.

An increase in inflation, stagnant economic recovery, and high fuel prices could have impacted the demand in the medium term, but do not play a role in the automotive sector at the moment.

Plug-in hybrid vehicle sales dropped by 18 percent in March, while sales of all-electric cars still increased by 31 percent, according to the study.

The combined market share of electric and plug-in hybrids in March increased from 15.3 percent to 20.4 percent in western Europe’s leading five markets compared to the same month in 2021, according to EY.