Automotive industry in crisis: the number of new registrations continues to fall

Status: 04/05/2022 3:26 p.m.

The automotive industry is in a production crisis due, among other things, to the lack of chips. This has consequences: in April, the number of new registrations fell by more than a fifth. For the first time, less purely electric cars were also hitting the streets.

The production crisis in the automotive industry caused a further drop in new registrations in April. Last month, 180,264 new cars were registered in Germany. That was 21.5% less than in April 2021, as reported by the Federal Motor Transport Authority (KBA). As of March, new registrations had fallen by 17.5% compared to the same month last year. According to the KBA, new business owner registrations fell 23.4% in April. New private registrations fell by 17.9%.

Expert expects higher prices and long delivery times

Automotive expert Peter Fuss of management consultancy EY explained that the industry would not be able to get the “massive” problems under control quickly. “Chip shortages and problems with the supply of raw materials and parts from suppliers remain high on the agenda – partly because of the strict containment measures in China, partly because of the war in Ukraine”. Production is at a standstill in some car factories, and manufacturers and suppliers are trying to turn to alternative production sites. “Further price increases and even longer delivery times are the consequences.”

Also fewer electric cars allowed

Even the number of new pure electric car registrations fell in April, by 6.9%. In the case of plug-in hybrids, the number of new registrations even fell by 19.6% compared to the previous year – the reason for this is the foreseeable reduction in government subsidies for plug-in hybrids.

“Lack of parts from suppliers also has a significant impact on new electrified car sales – especially since electric cars require even more chips than combustion engine vehicles,” Fuss explained. Additionally, high fuel prices have sparked even greater interest in electric cars. Manufacturers could therefore sell significantly more electric cars – “if they were able to deliver”.

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