German Car Trade Drops Sharply Because Of A Lack Of Chips And Delivery Bottlenecks

German car trade drops sharply because of a lack of chips and delivery bottlenecks

Berlin, November 30, : Germany’s passenger vehicle exports declined 17.2 percent year-on-year in Q3 to 23.1 billion euros ($26billion) due to a lack of chips.Electric cars, however, saw strong gains according to the Federal Statistical Office.
Destatis reported Monday that the country’s imports of cars between July and September fell 29.8% year-on-year to 11.2 billion euros.

 German Car Trade Drops Sharply Because Of A Lack Of Chips And Delivery Bottlenec-TeluguStop.com

Germany’s largest passenger car export market was the USA, with vehicles sold in the US for a total of 3.2 million euros in Q3.According to Xinhua news agency, this was a decline of 12.9 percent year-on-year.

In Q3 2021 Germany exported passenger cars worth 2.9 billion euros to China and two trillion euros to the UK.

Destatis stated that the most likely reasons for this development are the lack of chips in automotive and other delivery bottlenecks.

German car imports and exports fell to their lowest levels since the second quarter 2020.This was especially due to the Covid-19 restrictions.

Strong gains were recorded for pure electric vehicles and hybrid cars, however.Destatis reports that Germany exported 69,800 pure-electric vehicles worth 2.9 billion euros between July and September.This is a 26.9% increase year-on-year.

Germany imported 59700 electric vehicles in the same period.This is an increase of 58.4% year-on-year.

According to a study by Ernst & Young (EY), despite a reduction in production and a significant drop in total sales the operating profit of the 16 largest car companies in the world rose 11.4 percent year-on-year, and reached a new record of 23.1 billion euros in Q3.

Constantin Gall, managing partner and mobility leader at EY Europe West, stated that manufacturers don’t need to offer discounts in order to sell vehicles.

“Scarce microchips with priority are installed in high-priced, high margin vehicles.Demand is significantly higher than supply.”

According to the EY study, the total revenues of the companies surveyed fell by 1.6% to 371 billion euro.Half of the companies reported an increase or decrease in their revenues.

Peter Fuss, partner at EY, stated that it is possible that the current supply shortages will have a greater impact on the fourth quarter.

The “sharp increase in infection rates in certain countries” and the harsh countermeasures could again cause major dislocations, production stops and logistic disruptions.(1 euro = $1.13)

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