According to the latest figures from the European Automobile Manufacturers' Association (ACEA), January 2022 was the worst month for the sector since 1990 with a 6% drop compared to January 2021.

682,596 cars were sold in the EU last month compared to 726,411 units a year earlier. For ACEA, the main reason for this decline remains "the current shortage of semiconductors still negatively affecting car sales in the region.”

In two of the four main EU car markets, double-digit declines were observed: in Italy (-19.7% or 107,814 new registrations) and in France (-18.6% or 102,899 new registrations). Spain recorded a very slight growth of 1%, while Germany recorded a solid growth of 8.5% with 184,112 new cars. More generally, in Western Europe, almost all countries showed negative results. On the other hand, some Central European countries showed strong growth such as Slovakia (+72.6%) and Romania (+55.5%).

As a reminder, in Luxembourg, the car market recorded a drop of 11% in January 2022 compared to January 2021 with 3,300 new registrations. The same is true for Belgium, which recorded a drop of 10% with 33,947 new registrations.

Early this month the European commission to ensure the EU's security of supply in semiconductor technologies and applications. The European Chips Act will see some €43bn go into public and private investments.

This story was first published in French on . It has been translated and edited for Delano.