EU car market set to shrink in 2021

EU car market set to shrink in 2021

The European Automobile Manufacturers Association ACEA said on Friday that the European Union's car market is on track to shrink this year, falling by 1% to 9.6 million units in a downward revision from an initial projection for a return to growth.

This is a drop of 26% in car sales in the space of just three years compared to the pre-pandemic figures for the year 2019; the ACEA said in a statement, with reference to the updated forecast for 9.6 million units this year.

The ACEA said framework conditions were needed to be put in place to allow a recovery after Brexit, the coronaviruses epidemic, semiconductor supply bottlenecks and the war in Ukraine.

A EU Critical Raw Materials Act, which ensures access to the raw materials needed for e-mobility, and an accelerated roll-out of charging infrastructure, are some of the things that are included in Europe's supply chains, said ACEA President and CEO of BMW, Oliver Zipse.