EUROFER: EU auto output to rebound by 9% in 2021, 12.1% in 2022

Wednesday, 03 November 2021 11:33:44 (GMT+3)   |   Istanbul
       

According to the Economic and Steel Market Outlook 2021-2022/Q4 2021 Report from the Economic Committee of the European Steel Association (EUROFER), automotive output in the EU rose by 70.5 percent year on year in the second quarter this year, due to the comparison with the record lows of the second quarter last year when industrial production was idled due to the pandemic. In the second quarter of 2020, automotive output in the EU had indicated an unprecedented fall of 52.4 percent.

According to the EUROFER, ongoing disruptions on the supply side, and hikes in energy prices and shipping costs, have been curbing output growth considerably. They have also contributed to continued depressed demand and consumer uncertainty. According to the latest data, in September this year passenger car registrations decreased by 23 percent, while commercial vehicle registrations in August fell by 5.4 percent, both year on year. According to the EUROFER report, this major decrease in sales was largely caused by a lack of supply of vehicles due to the ongoing semiconductor shortage. On the other hand, in the first nine months this year, the number of passenger car registrations increased by seven percent year on year.

EUROFER stated that the ongoing disruptions in the supply chain continued to affect the automotive industry in the first half this year and are expected to persist up to the first quarter of 2022. The rebound underway since the third quarter of 2020 has led to sharp quarter-on-quarter rises in output, though output is still around historically low levels. General economic uncertainty across the EU during the ongoing pandemic has continued to impact car demand from consumers.

EUROFER expects automotive output in the EU to rebound by nine percent in 2021, followed by a 12.1 percent rise in 2022, both year on year.


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