European Car Sales Dip As Russia-Ukraine War Hits Industry

Car sales in Europe dropped in March, industry data showed on Wednesday.

This is as Russia's invasion of Ukraine added to the woes of the sector that has been long struggling with shortages of semiconductors.

According to the European Automobile Manufacturers' Association (ACEA), passenger car registrations fell 20.5% compared to the same period last year, with 844,187 units sold. 

It was the worst performance for March since statistics began in 1990.

The war has led to shortages of other parts, such as the cables used in car wiring harnesses and of which Ukraine is a manufacturer.

Several factories in Europe have had to go idle due to the lack of cables, with Volkswagen temporarily suspending production at several German sites.

The ACEA said; "The ongoing supply chain disruptions, further exacerbated by Russia's invasion of Ukraine, negatively affected car production."

Most countries in Europe had double-digit drops in car sales in March, the association said, with a fall of 17.5% in Germany, the biggest market.