French car sales declined by 35% in July compared to the same month in 2019, as the shortage of semiconductors hampered inventory in one of the largest European markets. According to data from the automotive industry group "Plateforme Automobile," released on Sunday, 115,713 new cars were registered in France during July. The report also noted that new car registrations in the first seven months of the year increased by 16% compared to the same period in 2020, when sales plummeted during the first wave of the COVID-19 pandemic.
This decline in car sales in July is an additional indicator that the recovery of the industry in Europe is slower than the rebound seen in both the United States and China. The latest data from the European Automobile Manufacturers Association showed that sales in the Eurozone dropped by two million cars in the first half of this year compared to the same period in 2019.
Renault predicted on Friday that the disruption in chip supplies would reduce production this year by around 200,000 vehicles, double the previous estimate. The company sold 1.42 million cars worldwide in the first half of this year, a nearly 25% drop from sales two years ago. Production constraints resulting from the chip shortage have also impacted manufacturers such as Volvo and Stellantis NV, which produces Peugeot and Citroën vehicles, competing in the French market with Renault. Carlos Tavares, CEO of Stellantis, stated to the Automotive Press Association in Detroit in July, "We are very sad to see our order book in excellent shape while we struggle to deliver cars."
