Economy

Car sales to rise by 7.9% in 2022 as chip supply stabilises in Europe, reports ACEA

Car sales in the countries under the European Union are anticipated to rise by 7.9% in 2022 as the semiconductor chips supply problems ease. However, the sales of cars will be 20% below 2019 pre-covid levels, as stated by the European Automobile Manufacturer’s Association (ACEA).

ACEA, which was founded in 1991, represents Europe’s 16 major car, van, truck and bus manufacturers. Moreover, it is working for the new era of mobility, where all citizens of Europe can access affordable transport solutions that are Green &clean, smart & efficient and safe & reliable.

In addition, the statement of ACEA comes on the day when the European Commission is set to present the European Chips Act to promote the research of the semiconductor chips and the production in Europe.

By taking this step, Europe’s dependency on other countries or regions for the semiconductor chips will decline and will help to generate revenue.

The association also urged the EU to reduce its reliance on overseas suppliers to avoid damage to the European industries in upcoming times.

The semiconductor shortage was prompted by the COVID-19 pandemic and the surge in demand for chips throughout the world. The consumers and corporates started buying new electronic gadgets for the staff to work remotely and for children to attend school at home only by using gadgets amid the Coronavirus pandemic.

Whereas the demand for chips has declined between 2018 and 2019, in 2020, the sales grew up by 6.3% amid Covid-19, and the growth in the sales of semiconductor chips is still rising as today.

While in the case of the automobile industry, the automakers scaled back their orders at the beginning of the pandemic as demand for the vehicles drastically dropped and then found itself back on track after getting large orders.

Zurab Kvaratskhelia

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