Expectation of contraction in the European car market

The European Automobile Manufacturers Association (ACEA) forecast that the car market in the European Union (EU) will shrink by 1 percent this year to 9.6 million units.

ACEA, which had previously forecast that the sector would return to growth, revised its forecasts down.

In the ACEA statement, the market expectation for this year was revised to 9.6 million units, “this means a 26 percent decrease in car sales in just three years compared to pre-election figures.” pandemic in 2019”, the communications were included.

NEGATIVE EFFECTS OF THE EPISODE AND THE WAR

Stating that Brexit, the corona virus epidemic, bottlenecks in the semiconductor supply chain and the Ukraine war negatively affected the sector, ACEA stated that a policy framework must be put in place to enable recovery.

“These include making Europe’s supply chains more resilient, the EU’s Critical Raw Materials Act allowing strategic access to the raw materials needed for electric mobility, and the pleasure of launching charging infrastructures,” he said. Oliver Zipse, Chairman of ACEA and CEO of BMW. (REUTERS)