Car sales in Europe remain below pre-pandemic levels

New vehicle sales in European Union countries increased for the second month as supply chain problems eased. However, despite the increase, sales continued to remain below pre-pandemic levels. According to data released by the European Automobile Manufacturers Association (ACEA), car sales in the European Union and the UK increased by 7.9 percent on an annual basis in September, reaching 1.05 million. Sales had declined for 13 consecutive months. Sales increased by 9.6 percent in the EU alone. Volkswagen and Mercedes sales increased by more than 20 percent in September. Despite the increase, sales remained well below 2019 levels before the pandemic due to many developments facing the sector, from chip shortages to the energy crisis. It is stated that although supply chain problems have eased, high inflation and a worsening economic outlook could also reduce sales. Economists surveyed by Bloomberg, who expected 0.3 percent growth in the Eurozone in 2023 last month, now expect a 0.1 percent contraction. While a 0.5 percent contraction is expected in Germany, Europe's largest economy, the economies of France, Italy and Spain are expected to grow.