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EU CAR SALES SINK YET AGAIN

March 25, 2021
But overall demand for polymers from the sector remains healthy, despite some slowdowns.

EU car sales sink yet again according to the latest new car registration figures from the European Automobile Manufacturers’ Association (ACEA).

The latest data shows another monthly fall in February, this time of around 19% compared to last year.

ACEA registration figures

While sales are low, the sector has been battling with a multitude of supply constraints of raw materials.

As polymers remain scarce, the most pressing issue is the scarcity of semiconductors. But players in the industry note the pandemic is causing supply issues of many other products.

However, even if EU car sales sink the picture remains mixed from the polymer industry.

While some players confirm an ease in demand, others note that demand from the industry is buoyant despite the low sales figures.

A plausible explanation for this sees China driving EU demand for cars and components, and ultimately polymers.

Nevertheless, as supply chain glitches slow down production of cars, healthy demand should persist.

As producers will try to recover this loss of production later in 2021, the relentless demand for polymers from the sector should continue for quite some time.

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