According to a new report by the European Automobile Manufacturer’s Association (ACEA) released this week, the passenger car market in the European Union shrank by 4.6% in 2022, to just 9.3 million units. It was the lowest reading since 1993.

The report noted the contraction was produced mainly by a shortage of components in the first half of the year due to supply chain issues. It noted between August and December the market improved, until new vehicle registrations increased by 12.8% in the final month.

Only Germany saw its market expand (1.1%) among the EU’s four largest markets. It was aided by the strong December results, according to the ACEA. The other three markets were all down compared to 2021, with Italy showing the biggest decline at -9.7%, and France following at -7.8%, with Spain showing the third largest decline at -5.4%.

According to the data, the number of EU-registered vehicles (excluding Malta, for which data is not available), rose by over 896,000 units last month, an increase from the more than 795,000 one year prior.

Volkswagen group car sales in the European Union, including Skoda, Audi, Seat, Porsche, and others, were down by 5.2% in 2022, according to the ACEA. Stellantis sales fell by 14.1%, as Renault Group sales dropped by 4.3% and BMW sales were down 5.1%. Mercedes Benz sales held steady compared to a year prior, at 549,023 units.

Asian car brands did quite well by comparison however. South Korea’s Hyundai, including Kia, saw its vehicle sales in the EU rise by 2.6%, as Toyota and Honda saw sales grow by 7.7% and 4.4% respectively. American automaker Ford however saw its sales decrease by 2.3%.

Verified by MonsterInsights