FRANKFURT, April 5 — German car sales plunged in March, official figures showed today, as the war in Ukraine disrupts supply chains and slows down production in Europe’s top economy.

New registrations fell by 17.5 per cent year-on-year to around 241,000 cars, the federal transport authority (KBA) said in a statement.

Russia’s invasion of Ukraine has "repercussions for production in Germany”, the VDA auto industry association said, as the conflict curtails production at key Ukrainian car part suppliers.

With crucial components from Ukraine running short and Western sanctions against Moscow adding further stress to already strained global supply chains, the outlook for Germany’s flagship auto industry has darkened.

The VDA sharply lowered its car production estimate for 2022, saying it now expected just seven per cent growth domestically this year, down from 13 per cent previously.

"The extremely dynamic circumstances, in particular the possible extension of sanctions against Russia, and additional uncertainty factors such as possible production losses in China as a result of the zero-Covid strategy, could make further adjustments to the forecasts necessary in the coming months,” said VDA president Hildegard Mueller.

German giants Volkswagen, BMW and Mercedes-Benz have already trimmed production at some plants as they wait for car part deliveries, while exports to Russia have been halted over the war.

EY auto analyst Peter Fuss said there was "no end in sight to the crisis” for the industry.

"Production is at a standstill in some automotive plants, while manufacturers and suppliers are feverishly looking for short-term solutions,” he said.

"We are currently seeing further price increases and even longer delivery times.” — AFP