Chip Shortage Sends European Car Sales Tumbling in December 2021; But Plug-ins Post Record 29% Share

The passenger car market in Europe failed to end 2021 on a high note, posting yet another decrease in sales in December. According to JATO Dynamics, new passenger car registrations in 28 European markets during that month dropped by 22 percent year-over-year to 949,252 vehicles. That is despite numbers in December 2020 already being down by 3.8 percent compared to December 2019.

Only 11.75 million new passenger cars were registered in Europe last year, a 1.6 percent drop compared to its 2020 numbers and a massive 26 percent fall from pre-pandemic levels in 2019. A supply chain crisis brought upon by the computer chip shortage contributed to the poor performance of the European auto industry in 2021.

However, Europe's embattled car industry was not all doom and gloom. In December, there was a surge in demand for plug-in electric cars, with its share reaching a new monthly record of 29.3 percent. Over 278,000 plug-ins were sold in Europe last month, thanks mainly to better availability of PHEVs and BEVs at dealerships and continued efforts from governments to provide incentives to consumers to shift away from traditional vehicles.

Plug-ins rescue Europe's auto industry with strong December sales

Electric vehicles accounted for a huge chunk of all new car registrations in several European markets, including Norway (90 percent), the Netherlands (64 percent), Sweden (61 percent), and Denmark (57 percent).

2.25 million plug-ins were registered in Europe in 2021, accounting for 19 percent of the total market. Sales of plug-in cars increased by a massive 58 percent compared to the previous year, thus continuing its rise for the second consecutive year. Some 1.42 million plug-in vehicles were sold in Europe in 2020, more than doubling its sales in 2019.

Related Article: UK Car Production Fell to 65-Year Low in 2021: COVID-19 Pandemic and Chip Shortage to Blame

Tesla Model 3 tops Europe's monthly sales for second time in 2021

In December, Tesla Model 3 was the best-selling car in Europe, recording 27,358 deliveries last year. It was the second time in 2021 that Tesla Model 3 topped the monthly sales in the continent, with the previous one coming in September. Tesla Model 3 managed to beat its result during the same period last year when it sold 24,657 units for the No. 3 position in December 2020.

Tesla's Model 3 made history during that month, becoming the first electric vehicle to top the general model rankings.

Peugeot 208 came in second with 20,186 vehicles sold, while Renault Clio finished third with 18,937 deliveries. Dacia Sandero and Peugeot 2008 ranked fourth and fifth in European car sales, selling 18,020 and 16,330 units, respectively. Rounding out the top 10 are Volkswagen T-Roc (14,449), Dacia Duster (14,405), Mini Hatch (13,451), Fiat/Abarth 500 (13,230), and Renault Captur (12,855).

Peugeot 3008 reigned supreme among plug-in hybrids, with 4,229 units sold in December 2021. Volvo XC60 came in second with 4,162 deliveries, followed by Volvo XC40 with 3,751 units sold. Rounding out the top 10 in the plug-in rankings are Ford Kuga (3,667), Mercedes GLC (3,609), BMW X1 (3,192), Mercedes A-Class (2,574), Renault Captur (2,474), Toyota RAV4 (2,407), and Volvo XC90 (2,150).

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